PREPA debt rating slashed four notches by S&P

|By:, SA News Editor

The Puerto Rico Electric Power Authority's $8.6B debt is cut to B- from BB by S&P following this week's temporary extension of its credit line which must still be repaid by month's end. The inability to get a renewal, says S&P, increases the risk the utility will attempt to restructure its debt under the new public corporation bankruptcy law passed last month.

MBIA (MBI -0.5%), Assured Guaranty (AGO +1.3%)

Previously: PREPA gets lifeline from lenders