S&P downgrades Puerto Rico debt to junk status

[Eugene]

Source: Reuters

S&P downgrades Puerto Rico debt to junk status

Tue Feb 4, 2014 5:26pm EST

(Reuters) - Standard & Poor's on Tuesday cut its credit rating on Puerto Rico, dropping the cash-strapped U.S. territory's debt to junk-bond status on concerns about its ability to access capital markets.

S&P, which had placed Puerto Rico's rating on notice for a downgrade last month, said it now rates the commonwealth at "BB+," or one level below investment grade. It had previously rated it "BBB-."

With some $70 billion of tax-free debt, Puerto Rico has a long soured economy and has for months been under threat of a ratings downgrade to junk-bond territory by all three U.S. credit ratings agencies.

Moody's and Fitch Ratings have not announced ratings decisions.

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Read more: http://www.reuters.com/article/2014/02/04/us-munis-puertorico-idUSBREA131M720140204

[DonViejo]

1. This was inevitable...

the way Bush and his 'puke cronies in the Senate decimated Puerto Rico in 2001 & 02 sent the island spinning. The economic crisis of '08 followed, hitting PR like a tsunami, and then, a GOP aligned Governor of PR laid off 30,000 employees. Oh, Grover Norquist wanted Governor Fortunuo to be the GOP Vice Presidential candidate in 2012.

[jakeXT]

2. I hope it's not another Lehman

This could be another Lehman-like crisis
http://finance.yahoo.com/blogs/talking-numbers/this-could-be-another-lehman-like-crisis-034217339.html