Fitch Ratings has assigned a BB rating to the commonwealth of Puerto Rico's up to $3.5 billion general obligation bonds of 2014, Series A.
Fitch has also affirmed the BB rating on $10 billion of outstanding GO bonds of the commonwealth.
The rating outlook is negative.
GO bonds are secured by the good faith, credit and taxing power of the commonwealth of Puerto Rico.
Strong legal provisions for GO debt include a constitutional first claim on commonwealth revenues, including transportation-related and rum excise tax revenues that are dedicated to specific authorities and other bonds. The commonwealth cannot file for bankruptcy.
Puerto Rico's economy has been in recession since 2006. Although some recent information suggests nascent improvement, results are mixed.
Fitch believes that the ultimate success of efforts to put the commonwealth's finances on a sustainable path will be dictated by the performance of the economy.
