Puerto Rico may face over $1 billion draw after downgrade-Moody's analyst

Reuters

NEW YORK (Reuters) - Puerto Rico could face over $1 billion of obligations from swap collateral requirements and debt acceleration on variable rate or mandatory tender bonds following a downgrade by Moody's Investors Service on Friday, a Moody's analyst said.

"Our assessment was that there could be over $1 billon of potential draws after a downgrade," Emily Raimes, the lead analyst for Puerto Rico at Moody's, told Reuters.

Moody's cut Puerto Rico's credit rating to junk status, citing concerns about the cash-strapped U.S. territory's weak growth and ability to access capital markets.

(Reporting by Edward Krudy; Editing by James Dalgleish)

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