(Reuters) - Moody's downgraded the Puerto Rico Electric Power Authority's (PREPA) $8.8 billion power revenue bonds to 'Caa3' from 'Caa2', citing uncertainty over the details of its expected debt restructuring plan.
"... we believe that any restructuring proposal will be influenced, to some degree, by the Commonwealth's politics, particularly given the weakened and lackluster state of the Puerto Ricoeconomy," Moody's said in a statement on Wednesday. (bit.ly/1o3w4gk)
Moody's assigned PREPA a negative outlook due to "uncertainty" and "obstacles" in executing a "complex restructuring plan" in the face of a challenging economic environment within the Commonwealth.
Moody's also said PREPA's ratings were not expected to move upward over the near-to-medium term.
(Reporting by Abinaya Vijayaraghavan in Bangalore; Editing by Simon Jennings)
Moody's downgrades Puerto Rico EPA revenue bonds
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