Standard & Poor's Ratings Services said it lowered its long-term rating and underlying rating to CCC-plus from B on the University of Puerto Rico's existing university system revenue bonds.
It also lowered the stand-alone credit profile on the university to ccc-plus from b. At the same time, it is placing the ratings on CreditWatch with negative implications. Some of these bonds were issued by the Puerto Rico Industrial, Tourism, Educational, Medical, & Environmental Control Facilities Financing Authority.
"The downgrade reflects the lowering of the general obligation rating of the Commonwealth of Puerto Rico to CCC+/Watch Neg on April 24, 2015," said Standard & Poor's credit analyst Bianca Gaytan-Burrell. "Pursuant to our CCC category rating definition, we believe that adverse economic conditions of the commonwealth would affect the size and stability of UPR's appropriations and operating liquidity, which, therefore, will not likely have the capacity to meets its financial commitment on a timely basis for its debt obligations."
