Standard & Poor's Ratings Services said it placed its BB-plus ratings on Puerto Rico Aqueduct & Sewer Authority's (PRASA) revenue bonds, guaranteed by the commonwealth of Puerto Rico, on CreditWatch with negative implications.
"The CreditWatch placement reflects our similar action on the general obligation (GO) debt rating the commonwealth on June 27, 2014," said Standard & Poor's credit analyst Theodore Chapman.
"We expect to resolve the CreditWatch status in step with our review of the GO rating on Puerto Rico, although this could occur sooner if PRASA were to indicate it may pursue a restructuring of its debt under a new law in the next 90 days."
The CreditWatch placement affects PRASA's series 2008A and 2008B revenue bonds, of which there are about $285 million outstanding. PRASA also has approximately $874.3 million outstanding in other commonwealth-backed obligations, mainly U.S. Department of Agriculture's Rural Development loans, as well as the Puerto Rico Infrastructure Financing Authority loans, none of which are rated by Standard & Poor's.
