PREPA CLARIFIES RECENT MEDIA REPORTS ABOUT CREDIT

RATING AGENCY PROCESS

San Juan, PR July 21, 2016 The Puerto Rico Electric Power
Authority (PREPA), clarifies recent media reports about the credit rating
agency process related to PREPAs restructuring. PREPA has not yet
initiated the formal rating process for the new securitization bonds, and
none of the credit rating agencies have denied or rejected any request
for a rating of such bonds. Over the past few months PREPA has been
meeting with the rating agencies to talk to them about PREPA, the
regulatory process and the restructuring efforts, with the objective of
keeping them up to date and maintain an open dialogue. Although there
is no assurance that the securitization bonds will receive an investment
grade rating, PREPA continues to believe that there is a path to obtaining
an investment grade rating for the securitization bonds and intends to
initiate a formal rating process with rating agencies in the near future.
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