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Moody's joins S&P, downgrades Puerto Rico credit rating to junk status

Moody's Investors Service has downgraded Puerto Rico's credit rating to junk status.

The announcement Friday by the credit rating agency comes just days after Standard & Poor's cut the U.S. territory's debt to junk as well.

Moody's says its decision was based in part of not seeing sufficient economic growth to help reverse negative financial trends.

A spokeswoman for Gov. Alejandro Garcia Padilla did not immediately return a message for comment.

Puerto Rico is struggling with $70 billion in public debt and is preparing to re-enter the bond market this month.

The island of 3.67 million people has entered its eighth year in recession and faces a 15.4 percent unemployment rate, the highest compared with any U.S. state.