PREPA gets lifeline from lenders

|By:, SA News Editor

The Puerto Rico Electric Power Authority late yesterday agreed with its lenders for them not to exercise remedies available to them after Moody's further downgraded the utility into junk territory last week. Under the deal, PREPA may delay certain payments currently due until the end of the month.

PREPA says it will continue discussions with its lenders and will use the extra time to evaluate its alternatives.

MBIA (MBI -2.4%) briefly spiked when the headline hit yesterday afternoon, but has resumed lower. Assured Guaranty (AGO -0.6%).