Standard & Poor's Ratings Services said it has corrected by lowering its underlying rating on Puerto Rico Highways and Transportation Authority's transportation revenue bonds (series D) with CUSIPs 745190J41 and 745190J58 to CC from BBB.
Because the SPUR is linked to the Puerto Rico Highway and Transportation Authority's transportation revenue bond rating, the SPUR should have been lowered when the agency lowered the authority's revenue bond rating to CC on Sept. 10.
The outlook is negative.
If any specific debt issues fell into default, S&P would lower the rating on the debt to D. Although it does not expect it to occur, if liquidity improved to the extent it believes likely for the commonwealth to avoid near-term default, it could potentially raise the rating back to the CCC category.
