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

By Michelle Kaske and Martin Z. Braun - Dec 13, 2012

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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