Puerto Rico

Bills introduced by Senate and House Democrats on Monday to temporarily halt litigation over Puerto Rico debt raise legal issues and could divide rather than unite lawmakers over a solution to the territory’s debt crisis, sources said on Wednesday.

Puerto Rico Sen. President Eduardo Bhatia Gautier said that he would not run to become governor in November 2016.

Four Senate Democrats and the House Minority Leader have introduced identical bills that would temporarily halt litigation by bondholders and creditors over Puerto Rico’s debt until Congress takes action to allow the territory to restructure the debt.

Puerto Rico is paying its annual Christmas bonus amid concerns about whether it will pay all its bond debt Jan. 1.

Puerto Rico’s employment went up for the fifth consecutive month on a month-to-month basis in November.

Congress postponed action on Puerto Rico’s debt crisis to next year as the island’s governor blasted U.S. legislators as pawns of Wall Street.

Puerto Rico's electric utility reached a tentative agreement with bond-insurance companies and some bondholders to restructure the utility's $8.2 billion of debt, according to two people with knowledge of the discussions.

Puerto Rico Aqueduct and Sewer Authority financial results in the first quarter of fiscal year 2016 were mixed.

Senate Minority Leader Harry Reid, D-Nev., made a final pitch on Thursday for lawmakers to include provisions to help Puerto Rico with its debt crisis in the pending omnibus spending bill, calling it “the moral thing to do.”

House Speaker Paul Ryan, R-Wis., said on Wednesday night that he is instructing all House committees that have jurisdiction over Puerto Rico to work with commonwealth officials to come up with a “responsible solution” for their fiscal and debt crises by the end of March.

The omnibus spending bill for fiscal 2016 fails to contain any significant help for Puerto Rico, but that should come as no surprise as Republicans and Democrats are still divided over the approach that should be taken, said knowledgeable sources.

Lawmakers are considering a $1.15 trillion omnibus spending bill for fiscal year 2016 that does not extend bankruptcy protection to Puerto Rico, and a more than $621 billion tax bill that would make permanent or extend expired tax provisions, including a few that are bond- and Puerto Rico-related.

Assured Guaranty’s chief executive officer is blasting the Treasury Department for pushing for bankruptcy protection for Puerto Rico, claiming the effort is blowing up utility authority negotiations with creditors and bondholders, as well as hurting the territory and alarming the municipal bond market.

Puerto Rico Gov. Alejandro García Padilla said the campaign would be a distraction from his effort to handle the island’s fiscal crisis.

Puerto Rico on Monday cut its revenue projections for the current fiscal year by 5.2%.

Fitch Ratings said it maintained the Rating Watch Negative on the CC rating for the following Commonwealth of Puerto Rico debt: commonwealth of Puerto Rico GO bonds; Puerto Rico Electric Power Authority (PREPA) power revenue bonds; Puerto Rico Aqueduct and Sewer Authority (PRASA) senior lien revenue bonds; Puerto Rico Sales Tax Financing Corporation (COFINA) senior lien sales tax revenue bonds and first subordinate lien sales tax revenue bonds; Employees Retirement System of the Commonwealth of Puerto Rico (ERS) pension funding bonds; Puerto Rico Public Buildings Authority (PBA) government facilities revenue bonds guaranteed by the Commonwealth and rated by Fitch; and PRASA Commonwealth guaranty revenue bonds.

The filing by Republican lawmakers of two bills in the U.S. Congress that could assist Puerto Rico during its current financial crisis does not result in a change to Standard & Poor's Ratings Services' credit rating or outlook (CC/Negative) due what it sees as the uncertain chances for enactment of these bills.

Four of the five Puerto Rico authorities whose revenues were diverted to pay Government Development Bank of Puerto Rico notes on Dec. 1 are expected to make their own bond payments on Jan. 1. The exception may be the Puerto Rico Infrastructure Finance Authority.

The Republican chairs of three Senate committees that have jurisdiction over Puerto Rico and bankruptcy introduced a bill on Wednesday night that would establish an authority that could issue bonds and provide up $3 billion in resources to help Puerto Rico stabilize its budget and debt.

Puerto Rico Gov. Alejandro García Padilla signed a bill to create a fiscal supervisory board Tuesday.