The downgrade to `Caa3´ from `Caa2´ affects about $55.5 billion in bonds and indicates imminent default with little prospect for recovery. Bonds of the Puerto Rico Aqueduct and Sewer Authority were also downgraded to ‚Caa3.‘
Moody‘s said the commonwealth‘s decision to devise broad restructuring plans were „clear signs that holders of even those Puerto Rico securities with strong legal protections face significant loss.“