Moody’s Investors Service downgraded Puerto Rico’s general obligation rating Monday to Baa1 from A3, with a negative outlook, one day before the Puerto Rico Public Building Authority’s planned pricing of $981 million of bonds.

The move reflects “the commonwealth’s continued financial deterioration of the severely unfunded retirement systems, continued weak economic trend, and weak finances, with a historical trend of funding budget gaps with borrowing,” Moody’s said in a report.

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