S&P downgrades Prepa

Standard & Poor’s said it lowered the rating on Puerto Rico Electric Power Authority’s (Prepa) power revenue bonds two notches to CCC from B-.

The rating remains on CreditWatch with negative implications, where it originally was placed in June, S&P said.

The lower rating indicates that the authority’s debt is vulnerable to nonpayment, the agency said, and depends upon favorable business, financial and economic conditions for the obligor to meet its commitment.

In the event of adverse business, financial, or economic conditions, Prepa is not likely to have the capacity to meet its financial commitment on its obligations.

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