Puerto Rico debt cut to junk by S&P

|By:, SA News Editor

Citing reduced capacity to access liquidity to fund its operating deficit, S&P cuts Puerto Rico to BB+ and continues the rating on negative watch.

Even with the forthcoming debt issuance being planned, the commonwealth "will remain constrained in the medium term." Both Moody's and Fitch are threatening to drop Puerto Rico to junk status as well.

Taking a late hit on the news were MBIA (MBI -1.8%), Assured Guaranty (AGO +0.3%), and Ambac (AMBC -1.1%).

Muni ETFs: MUB, HYD, BAB, PZA, MUNI, TFI, ITM, HYMB, MLN, CMF, BABZ, XMPT, SHM, BABS, SUB, PRB, NYF, PZT, SMB, CXA, PWZ, PVI, SMMU, SHYD, MUAF, INY, MUAE, MUAD, MUAG, MUAC, VRD, GMMB, RVNU