Moody's sends Puerto Rico's bonds deeper into junk territoryStaff writer ▼ | July 2, 2015
Moody's Investors Service downgraded Puerto Rico's general obligation and guaranteed bonds further into junk territory, citing Governor Alejandro Garcia Padilla's declaration that the commonwealth cannot pay its debt.
Puerto Rico After Garcia Padilla said the debt cannot be paid
Moody's said the commonwealth's decision to devise broad restructuring plans were "clear signs that holders of even those Puerto Rico securities with strong legal protections face significant loss."
"It appears unlikely that a limited restructuring excluding those better-protected bonds will be sufficient for Puerto Rico to gain the relief desired," Moody's added. Puerto Rico's rating has declined 12 notches since 2011, according to Moody's.
The outlook for all affected securities remains negative, Moody's said. ■