SAN JUAN, Puerto Rico (Globe Newswire) April 27, 2015 – The Securities Arbitration Law Firm of Klayman & Toskes, P.A. (“K&T”) and Carlo Law Offices comment on Standard & Poor’s (“S&P”) decision Friday to lower Puerto Rico’s General Obligation bond rating further into junk territory from B to CCC+, four notches above default status. According to S&P statements, “We base our downgrade…on our view that the commonwealth’s market access prospects have further weakened and Puerto Rico’s ability to meet its financial commitments is increasingly tied to the business, financial and economic conditions on the island. Absent improvement in those conditions, we believe debt and other financial commitments will be unsustainable.”
According to securities attorney, Steven D. Toskes, Esq., “The recent downgrade may be followed by more ratings agencies downgrades for bonds issued in Puerto Rico, which may result in further selling pressures from municipal bond portfolios including large mutual funds that hold Puerto Rico municipal bonds.” Mr. Toskes warns, “Investments in closed-end funds that are leveraged against portfolios concentrated in Puerto Rico municipal bonds has been disastrous for investors.”
Investors who suffered losses in Puerto Rico municipal bonds that are the result of Financial Industry Regulatory Authority (FINRA) sales practice violations may recover losses through a securities arbitration claim. FINRA sales practices violations includes unsuitable investment advice, that results in concentrated investments in Puerto Rico municipal bonds, which is due to brokerage firms’ failure to supervise its financial advisors. Klayman & Toskes, P.A. is currently investigating sales practice violations of UBS Financial Services of Puerto Rico (NYSE: UBS), Santander Securities (NYSE: SAN), Popular Securities (NASDAQ: BPOP) and Oriental Financial (NYSE: OFG) related to recommended investments in Puerto Rico municipal bonds and Puerto Rico closed-end bond funds.
The securities arbitration law firms of Klayman & Toskes, P.A., and Carlo Law Offices, P.S.C., are committed to the protection of Puerto Rico investor rights. The FINRA dispute resolution process and the legitimacy of Puerto Rico investor rights direct our current investigations. The sole purpose of this release is to investigate, on behalf of our clients, the sales practices of Puerto Rico brokerage firms in connection with investment recommendations provided to their customers. Current and former customers of Puerto Rico brokerage firms who have information concerning sales practices related to investments in Puerto Rico closed-end bond funds and Puerto Rico municipal bonds are encouraged to contact Steven D. Toskes of Klayman & Toskes, P.A. or Lcdo. Osvaldo Carlo of Carlo Law Offices, at (787) 919-7325, or visit our websites at www.sueubspuertorico.com and www.perdidasenbonospr.com/en/.
About Klayman & Toskes
Klayman & Toskes, PA is a leading securities and litigation law firm, practices exclusively in the field of securities arbitration and litigation, on behalf of retail and institutional investors. The firm represents investors throughout the world in securities arbitration and litigation matters against major Wall Street brokerage firms.