The U.S. Treasury Department reiterated the Obama administration's support for Puerto Rico's efforts toward fiscal recovery after Moody's Investors Service cut the commonwealth's speculative grade debt ratings.
Responding to an inquiry by The Bond Buyer, a Treasury spokesman indicated the administration wouldn't alter its position with respect to helping Puerto Rico to pay back debt and restore economic growth.
"The Treasury Department continues to support the administration's ongoing engagement with Puerto Rico on its fiscal situation," the spokesman said. "Puerto Rico's challenges did not develop overnight and they will not be solved overnight. The Treasury looks forward to additional planning and progress from the Puerto Rican government."
He continued, "The administration wants Puerto Rico to succeed in its efforts and will keep on supporting the recovery, within its authorities, by continuing to ensure that the commonwealth is able to take advantage of all available existing federal resources."
Moody's on Thursday cut Puerto Rico's general obligation rating to Caa1 from B2.
