Puerto Rico came under increased pressure to issue bonds in coming months to prove it can still access capital, as Moody's Investors Service put $52 billion of the island's debt under review for a downgrade to junk status.
Moody's late Wednesday placed all Puerto Rico bond ratings except for those of the Puerto Rico Electric Power Authority and the University of Puerto Rico under review, listing failure to access the public debt markets and declines in liquidy among five factors that could trigger a downgrade. Fitch Ratings last month put Puerto Rico's general obligation BBB-minus rating under review, citing similar concerns over the commonwealth's ability to raise money.
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