- Moody's becomes the second rating agency this week to downgrade Puerto Rico’s credit rating to junk status, after Standard & Poor’s did so earlier this week.
- Moody's says Puerto Rico's economic malaise, underfunded pension obligations and high deficit "have now put the commonwealth in a position where its debt load and fixed costs are high, its liquidity is narrow, and its market access has become constrained."
- The Moody’s downgrade pertains mostly to the GO bonds, which effectively triggers downgrades on all subsequent notes and bonds.
- At issue now is whether Puerto Rico can sell the debt needed to manage its short-term finances and lay groundwork for the government's plan for economic recovery.
- ETFs: MUB, HYD, BAB, PZA, MUNI, TFI, ITM, HYMB, MLN, CMF, XMPT, BABZ, SHM, BABS, SUB, PRB, NYF, PZT, SMB, CXA, PWZ, PVI, SMMU, SHYD, MUAF, INY, MUAE, MUAD, MUAG, MUAC, VRD, GMMB, RVNU
at CNBC.com (Jul 25, 2014)