Standard & Poor’s dropped its rating on grant anticipation revenue bonds from the Puerto Rico Highway and Transportation Authority to A from A-plus on Friday and put the rating on CreditWatch with negative implications.

A payment dispute between the United States Army Corps of Engineers and the Puerto Rico government led the United States Treasury to withhold a payment to the PRHTA on March 12. The payment had been specified in a memorandum of understanding in which the Federal Highway Administration had promised to reimburse PRHTA for federal-aid highway projects.

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