Standard & Poor cut Puerto Rico’s credit rating to junk status today, a move that had been anticipated by market watchers. S&P had placed Puerto Rico’s rating on downgrade notice last month and today it moved the rating to BB+ which is one level below investment grade. Previously it was rated BBB-. “The downgrades follow our evaluation of liquidity for the Commonwealth,” an S&P press release stated. Concerns are that political and government leaders will be placed in a difficult position of dramatically reducing spending or somehow raising revenue to fill the gap. As reported in ValueWalk two days ago, Puerto Rico Governor…
Puerto Rico's Debt Now Junk As Expenses Continue To Outpace Revenue
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.