Standard & Poor's yesterday removed $5.2 billion of Puerto Rico Sales Tax Financing Corp. revenue bonds from negative watch and affirmed its A-plus rating on the debt as a proposal to alter the island's sales tax failed to gain support in the Legislature.

Standard & Poor's placed the credit on credit watch with negative implications on June 24 after Gov. Anibal Acevedo Vila proposed decreasing the island's sales tax to 2.5% from 7% and implementing a revamped 6% excise tax instead. The $5.2 billion of outstanding sales-tax bonds are backed by 1% of sales tax revenues, yet the structure of the revenue stream allows the corporation to tap into additional sales-tax receipts beyond the 1% to cover debt service payments.

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