Puerto Rico

Standard & Poor's Ratings Services said it has affirmed its CC rating on various issues of the commonwealth of Puerto Rico's tax-backed debt not currently in default.

The Supreme Court will hear oral arguments Tuesday on whether Chapter 9 of the federal bankruptcy code, which does not apply to Puerto Rico, nevertheless preempts or makes illegal a law adopted by the commonwealth that would allow its utilities to restructure their debts.

Puerto Rico Gov. Alejandro García Padilla is preparing to submit a bill for a moratorium on the payment of Puerto Rico’s debt.

Senate Finance Committee chair Orrin Hatch, R-Utah, on Thursday called for Democrats and the administration to be more transparent and realistic, after proposing “unworkable” solutions to Puerto Rico’s crisis as Congress continues to work toward bipartisan legislation for the commonwealth.

A Financial Industry Regulatory Authority arbitration panel this week approved the removal of a complaint about Puerto Rico bonds from a financial advisor’s record after concluding the advisor kept the investor adequately informed of the risks posed by the bonds throughout their seven-year relationship.

The Puerto Rico Electric Power Authority said Wednesday it anticipates an electricity rate increase by midyear, about four months earlier than previously indicated.

A New Jersey senator’s proposal to resolve the Puerto Rican economic crisis sets a dangerous precedent by elevating public pensions over the island’s other liabilities and thus undermining the time-honored priority of the general obligation pledge. And with many in the municipal market tiring of the island’s narrative and choosing to ignore the storyline, the consequences could be dire.

Senate Democrats on Tuesday introduced another bill that would give Puerto Rico broad debt restructuring capabilities.

Presidential candidate Sen. Bernie Sanders released a plan for Puerto Rico on Monday that proposes extending Chapter 9 bankruptcy protections to the commonwealth’s municipalities and contains several healthcare and environmental initiatives.

Puerto Rico’s employment weakened in January compared to December.

Sen. Bob Menendez, D-N.J., and several other Senate Democrats introduced two bills on Monday to give Puerto Rico broad restructuring powers as well as better federal tax and healthcare treatment, but the legislative package is likely to face stiff resistance in Congress where many Republicans have opposed territory-wide debt adjustments.

The Puerto Rico Electric Power Authority is preparing to privately place $111 million in bonds by March 28.

The Puerto Rico House of Representatives passed a bill to help the Puerto Rico Aqueduct and Sewer Authority Thursday.

Puerto Rico Gov. Alejandro García Padilla said a senior member of U.S. House Speaker Paul Ryan’s legislative delegation reaffirmed a commitment to prompt action that would give the commonwealth the tools for a debt restructuring.

The chairman of the Puerto Rico House Treasury and Budget Committee called for major tax changes including $1.2 billion in tax cuts and spending measures.

Puerto Rico will delay an increase in a business-to-business services tax by at least two months to allow more time to consider alternatives.

Standard & Poor's Ratings Services said its CCC-minus ratings on Puerto Rico Aqueduct & Sewer Authority's senior-lien revenue bonds and commonwealth-supported debt remain on CreditWatch with negative implications.

To keep current on its own bonds Puerto Rico Aqueduct and Sewer Authority may divert money owed to the Puerto Rico Infrastructure and Finance Authority, the Government Development Bank for Puerto Rico, and the U.S. Department of Agriculture.

Amid growing political opposition Governor Alejandro García Padilla may exercise his option for a 60 day delay.

House Natural Resources Committee chair Rob Bishop, R-Utah, visited Puerto Rico Friday as part of a multi-day trip to meet with commonwealth officials and groups as Congress continues to debate a reasonable solution for the territory’s fiscal problems.