Pierluisi Urges Raters, Firms to Have Faith in Puerto Rico

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WASHINGTON — Puerto Rico's non-voting representative in Congress met with credit rating agencies and investment bankers in New York over the weekend, seeking to assure them about Puerto Rico's economic future.

"Between last Friday and this Monday, I took advantage of the fact that I was in New York to meet with officials from Moody's, Fitch Ratings, and multiple investment firms that own the bonds issued by the Puerto Rico government and its instrumentalities," resident commissioner Pedro Pierluisi said Tuesday. "During these meetings, I advised the officials of the constructive criticism I have offered regarding the current government, in particular the range of new taxes that it has unwisely imposed at a time when our economy is extremely fragile."

Pierluisi, a Democrat, said his discussions included the controversial Puerto Rico Public Corporation Debt Enforcement and Recovery Act signed into law by Gov. Alejandro García Padilla last month. That law, which allows publicly-owned corporations in Puerto Rico to reorganize through bankruptcy, has spurred major credit concerns surrounding the Puerto Rico Electric Power Authority's bonds and prompted investment firms to file suit against the commonwealth in an effort to have the law overturned. Pierluisi announced earlier this month that he would explore the possibility of amending the federal bankruptcy code to allow that — an approach the governor opted not to pursue after U.S. Treasury officials told him it would be a lengthy process.

"At the same time, I expressed my commitment that, in future years, the Puerto Rico government will not spend a dollar more than it receives in revenue and that our government-owned corporations will be become self-sufficient or they will cease to exist," Pierluisi said, adding that it is crucial to maintain the muni finance community's faith in Puerto Rico because "there is no way the island can make progress without adequate access to the financial markets."

"Now, more than ever, we must strive to communicate openly and effectively with those who evaluate the credit-worthiness of our bond-issuing entities and those who provide us with essential capital, and I intend to do everything within my power to ensure this occurs," Pierluisi said.

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