Puerto Rico

Financial guarantors that insure $15 billion of Puerto Rico bonds have taken a drubbing in the stock market as the island's debt restructuring law triggered a series of credit downgrades.

Standard & Poor's senior Puerto Rico analyst said S&P's rating of Puerto Rico's sales tax back bonds may drop more notches in the near future than those of the general obligation bonds.

Municipal Market Advisors said investors should sell off Virgin Island and Guam bonds if Puerto Rico's restructuring act is allowed to stand, because it could enable other U.S. territories to unilaterally change bond provisions.

The Puerto Rico Electric Power Authority is getting a short extension on line-of-credit payments that had been due in early July.

Puerto Rico's new debt law is a credit negative for financial guarantors, Moody's Investors Service said.

A Puerto Rico court has said the struggling bank Doral Financial will be able to have a court hearing for its claim against Puerto Rico's Treasury Department.

Puerto Rico Gov. Alejandro Garcia Padilla came out swinging with a defense of his economic and fiscal programs after Moody's Investors Service lowered the island's credit ratings farther into junk territory.

Puerto Rico Electric Power Authority made a key bond payment of $418 million to avert what would have been a record default for the muni market.

Puerto Rico Gov. Alejandro García Padilla signed a $9.56 billion General Fund budget Tuesday.

Oppenheimer Rochester Funds and Franklin Funds sued Puerto Rico Gov. Alejandro García Padilla to overturn the public corporation debt restructuring bill he signed Saturday.