Fitch Ratings said it has downgraded the rating on $8.7 billion of Puerto Rico Electric Power Authority (PREPA) power revenue bonds to BB from BB-plus.
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In addition, Fitch has also placed the BB rating on Rating Watch Negative.
The downgrade and Rating Watch reflect Fitch's heightened concerns about PREPA's ability to manage near-term liquidity demands brought on by maturing bank lines of credit and the required repayment of outstanding loans due in July and August 2014.
Fitch expects to resolve the Rating Watch over the coming months.
