Puerto Rico Credit Rating Cut by Moody’s to One Level Above Junk

Puerto Rico had its debt rating cut two levels today by Moody’s Investors Service, to one step above speculative grade, according to a spokeswoman for the commonwealth’s fiscal agent.

Moody’s cited Puerto Rico’s “weak economic environment” and unfunded pension liability for the downgrade, Ana Maria Gregorio, a spokeswoman for the Government Development Bank for Puerto Rico, said in an interview.

The credit grade is now Baa3. David Jacobson, a Moody’s spokesman in New York, didn’t immediately respond to a phone call and e-mail.

To contact the reporter on this story: Michelle Kaske in New York at mkaske@bloomberg.net

To contact the editor responsible for this story: Mark Tannenbaum at mtannen@bloomberg.net

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