Standard & Poor's ("S&P") downgraded Puerto Rico’s General Obligation bond rating even further into junk bond status from B to CCC+. S&P based its downgrade on the belief that Puerto Rico’s financial stability has weakened even further, raising ever growing concerns about Puerto Rico’s ability to meet its financial commitments. This most recent bond rating downgrade could spell even further losses for investors who hold Puerto Rico bonds or Puerto Rico bond funds. Puerto Rico investors already have lost billions of dollars in UBS Puerto Rico’s risky, leveraged closed-end bond funds and they could lose even more money now.
DKR represents more than 100 investors who have lost money in UBS Puerto Rico closed-end bond funds and Puerto Rico municipal bonds. We are pursuing numerous FINRA arbitration claims against UBS on behalf of our clients in an effort to recover those bond fund investment losses. The claims we are pursuing include allegations that the UBS misled Puerto Rico investors about the risk of the UBS bond funds. UBS also made unsuitable investment recommendations when it recommended that investors buy over-concentrated positions in the risky UBS Puerto Rico funds.