Puerto Rico Grade May Be Cut to Junk, BlackRock’s Hayes Says

Puerto Rico may have its credit rating cut to junk in the fiscal year beginning July 1 as the commonwealth struggles with a shrinking economy, says Peter Hayes, head of municipal debt at New York-based BlackRock Inc.

The self-governing Caribbean territory is ranked one step above speculative grade by the three major credit companies. Should it fail to meet its projections for tax revenue and economic growth, one of the firms may lower its rating as soon as mid-2014, Hayes said today at a media presentation in New York. He helps oversee $108 billion of munis, including Puerto Rico debt, for the world’s largest money manager.