June 21, 2013 / 2:32 PM / 6 years ago

S&P cuts Puerto Rico Electric Power Authority rating to BBB

June 21 (Reuters) - Standard & Poor’s Ratings Services on Friday cut its rating on Puerto Rico Electric Power Authority’s (PREPA) power revenue bonds to BBB from BBB-plus citing the island’s weak economy.

The rating outlook is stable.

“PREPA’s credit profile is strongly linked to the economy it serves,” said S&P in a statement adding that the authority’s dependence on fuel oil, the cost of converting plants to gas, weakened debt service and limited liquidity are also factors in the rating downgrade.

Moody’s Rating Service on Wednesday downgraded PREPA to Baa3 from Baa2, with a negative outlook.

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below