Posted on 07/01/2014 2:58:11 PM PDT by george76
Ratings company Moody's on Tuesday slashed Puerto Rico's debt rating by three notches into even deeper junk status after the US territory passed a debt-restructuring law.
Moody's Investors Service cut the rating to "B2" from "Ba2" and said the outlook was negative, indicating further downgrades were possible.
Now dubbed the "Greece of the Caribbean," the archipelago is, like Greece, reeling under massive debt.
Over the past decade, the commonwealth's debt has doubled to nearly $70 billion and investors are growing increasingly worried the government is running out of cash.
In a bid for debt relief, the Puerto Rican authorities recently adopted a law that allows for the restructuring of part of its debt by allowing public corporations to defer or reduce payments on outstanding payments, to the detriment of creditors
...
The financial problems of the Caribbean island, which has a population of only 3.7 million, have shaken the large market for US municipal bonds, especially in the wake of the default last year by the city of Detroit.
(Excerpt) Read more at france24.com ...
Where’s Michael Milken when you need him?
Quick! Send them a few billion!!!
from BB to B.
BB and lower is junk
That’s $19k per inhabitant ,, just redirect 1 years worth of welfare payments to the debt and it’s done... Of course that’ll mean 3.69 million Puerto Ricans will flee to Florida.
Ummm...last I checked, Puerto Rico is an island.
Ping
Good catch.
I visited there for the first time this spring.
It’s like a lot of places in the Caribbean, you can be in a deluxe resort, walk two short blocks down the street, and you’re suddenly wishing you had concealed carry.
Puerto Rico must have allowed leftists to write their new law, since it apparently makes things so much worse.
PR’s debt is about $19,000 a person
PR also includes many smaller islands besides the mainland so it is technically correct
How long before the cries for a US taxpayer-funded bailout?
9...8...7.....
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