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Governor Luis Fortuño of Puerto Rico at a conference of municipal bondholders last week

Cofina Bonds, Highly Popular Muni, Likely To See Downgrade: Wells Fargo

A highly popular tranche of municipal debt issues is likely to feel the sting of a multi-notch ratings downgrade soon, a Wells Fargo credit strategist warned. The downgrade would wreak havoc on the portfolio strategy of a substantial number of investors in tax-exempt debt, and would also likely have noisy political repercussions in Puerto Rico, the municipality whose bonds are in the crosshairs.