July 11 Standard & Poor's ratings service cut
the Commonwealth of Puerto Rico's general obligation rating to
"BB" from "BB+", citing enactment of a new law, which allows
certain corporations to restructure their debt.
"We also believe that the enactment of the bill is
indicative of the mounting economic and fiscal challenges for
the commonwealth as a whole," S&P said. (bit.ly/1wcilqO)
The ratings agency also cut its rating on the Puerto Rico
Sales Tax Financing Corporation (COFINA) first lien sales tax
bonds to "BBB" from "AA-" and its second lien COFINA sales tax
underlying rating (SPUR) to "BBB-" from "A+".
All ratings have been removed from CreditWatch and assigned
a negative outlook, S&P said on Friday.
(Reporting by Abinaya Vijayaraghavan in Bangalore; Editing by