June 30 (Reuters) - Puerto Rico’s new debt restructuring law will increase the default risk for public corporations, Moody’s Investors Service said on Monday.
The law “signals the Commonwealth’s diminished willingness to support public corporations that have historically relied on the commonwealth’s general tax revenues to pay for operating deficits and borrowing needs,” Moody’s said.
The law, passed last Wednesday, lays out a bankruptcy-like process for some public corporations. It applies to semi-autonomous public authorities that manage Puerto Rico’s infrastructure and are unable to pay their debts. (Reporting by Arnab Sen in Bangalore; Editing by Joyjeet Das)