In his first year in office last year, Puerto Rico Gov. Luis Fortuño reduced government spending and cut the island’s payroll while at the same time raising taxes and implementing property taxes.

The goal at that time was to retain Puerto Rico’s investment-grade ratings. High debt levels and recurring structural deficits threatened the ratings, which were BBB-minus from Standard & Poor’s and Baa3 from Moody’s Investors Services. Following Moody’s recalibration, the rating is now A3.

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