Puerto Rico's Debt Now Junk As Expenses Continue To Outpace Revenue

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...