Puerto Rico on Friday defaulted on $779 million in general obligation bonds, and while the default is no surprise given the island’s financial woes, it’s still bad news, and has led to a downgrade from Fitch Ratings, Barron’s reported today. The credit rating agency cut Puerto Rico’s Long-Term Issuer Default Rating (IDR) to “RD” from “C” and general obligation (GO) bond rating to “D” from “C” after the default on Friday. Fitch had put Puerto Rico on ratings watch in anticipation of a downgrade in case of default, and after today’s action it’s been removed. Read more.
For more news and analysis of Puerto Rico's debt crisis, be sure to visit ABI's "Puerto Rico in Distress" webpage.
