Though analysts and municipal managers said Tuesday's Standard & Poor's downgrade of the Puerto Rico Aqueduct & Sewer Authority was widely expected, the cut — the second experienced by one of the commonwealth's issuers in as many weeks — means more stress and concern for Puerto Rico bond holders, and could likely lead to less liquidity, wider spreads, and consequently, costlier trips to market.

Municipal experts said the downgrade  of the PRASA senior-lien bonds to BB-plus from its prior investment-grade BBB-minus rating, with a negative outlook, adds another layer of concern for investors on the heels of a March 20 downgrade by Fitch Ratings and a March 13 downgrade from S&P of the general obligation rating - both one-notch to BBB-minus with negative outlooks.

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