Two weeks ago saw Argentina’s currency drop significantly as the reality of the decrease in foreign currency reserves showed no signs of changing and no signs of a reversal from the government and central bank.
This morning brought the following item:
S&P cuts Puerto Rico to junk status.
S&P has reduced Puerto Rico’s rating to BB+ and maintained a negative outlook for the debt-laden commonwealth, citing a reduced capacity to access liquidity to fund its operating deficit. Even though Puerto Rico is planning to issue debt, it “will remain constrained in the medium term,” S&P says. Moody’s and Fitch are threatening to drop Puerto Rico to junk status as well.
From Wall Street Breakfast on Seeking Alpha
Puerto Rico’s debt is nine times the amount of debt that Detroit had when it declared bankruptcy. The possibility of bankruptcy from this nation may be coming.