S&P Downgrades Puerto Rico
25 April 2015 - 1:44AM
Dow Jones News
By Josh Beckerman
Standard & Poor's Ratings Services has downgraded Puerto
Rico to CCC+ from B and placed the rating on CreditWatch with
negative implications.
The ratings firm attributed the downgrade to "our view that the
commonwealth's market access prospects have further weakened and
Puerto Rico's ability to meet its financial commitments is
increasingly tied to the business, financial, and economic
conditions on the island."
S&P believes "budget pressures are exacerbated by current
weak economic trends and high debt levels."
Puerto Rico's government may run out of money and have to shut
down in the next three months, with a "devastating impact" for the
U.S. commonwealth's economy, officials at the island's Government
Development Bank warned in an April 21 letter.
Puerto Rico has more than $70 billion in debt and is struggling
with a weak economy and high unemployment.
Write to Josh Beckerman at josh.beckerman@wsj.com