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Puerto Rico

Q&A: Puerto Rico's debt crisis, what it means for muni bonds

Puerto Rico's worsening debt crisis is dimming the economic outlook for the U.S. territory and putting pressure on Congress to help resolve the situation but it is having little effect on the market for municipal bonds and most investors.

Gov. Alejandro Garcia Padilla said Monday Puerto Rico did not make a debt payment of nearly $370 million and called on Congress to help restore the island's legal ability to restructure its debt or a much more significant default could occur July 1.

"Let me be very clear, this was a painful decision," Padilla said in a speech, saying the government could not make the payment without sacrificing basic necessities for the island's...