Puerto Rico

Moody's Investors Service has downgraded the rating for Puerto Rico Electric Power Authority's (PREPA) approximately $8.0 billion in Power Revenue Bonds to Ca from Caa3. The outlook remains negative.

Puerto Rico Electric Power Authority bonds were slashed to D Thursday by Fitch Ratings in the wake of the utility’s bankruptcy filing.

Assured Guaranty lashed out Wednesday at a federal oversight board decision allowing the Puerto Rico Electric Power Authority to proceed with Title III bankruptcy filing.

PREPA officials said they don't expect the filing to affect owed payments or electric supply.

Fitch Ratings said has downgraded the rating on the Puerto Rico Sales Tax Financing Corporation (COFINA) $6.3 billion senior lien sales tax revenue bonds and $8.9 billion first subordinate lien sales tax revenue bonds to D from C.

The move follows the board’s decision to reject a Restructuring Support Agreement developed over three years between Puerto Rico Electric Power Authority and its creditors.

Puerto Rico's first mediation meeting in its Title III bankruptcy case will take place on July 12.

With fiscal year 2017 nearing an end in Puerto Rico, the Oversight Board was threatening to approve a budget Friday morning without local government agreement and the electric power authority was on the verge of default on a $423 million bond payment due Monday.

The SEC could charge workers from Morgan Stanley & Co. and Barclays Capital, who worked on the deals.

The U.S. Securities and Exchange Commission may take action against bankers from Barclays Plc and Morgan Stanley for their roles in Puerto Rico bond sales before a worsening fiscal crisis sent it hurtling toward bankruptcy.