Puerto Rico

Puerto Rico Gov. Alejandro García Padilla introduced legislation to reform the Puerto Rico Electric Power Authority today, a step PREPA’s creditors are requiring for them to accept reduced debt payments.

The parent of the biggest insurer of Puerto Rico Electric Power Authority bonds won a “buy” rating on the expectation that PREPA will soon come to an agreement in which bond insurers will suffer minimal losses at worst.

Puerto Rico Electric Power Authority officials were optimistic Friday that they would complete a debt restructuring agreement and pass related legislation quickly.

Puerto Rico could benefit from a control board similar to what Congress implemented for Washington, D.C., said former House Speaker Newt Gingrich.

The nonprofit OPEN Puerto Rico announced the founding of a municipal financial web site and a municipal financial index Thursday.

Puerto Rico Secretary of State David Bernier resigned Sunday, possibly indicating that he will run to be the next Puerto Rico governor and the current governor will not run.

Municipal professionals, insurers and bondholders criticized the United States Treasury’s proposal for a “Super Chapter 9” bankruptcy bill for Puerto Rico as dangerous.

Presidential candidate Sen. Bernie Sanders, I-Vt., has told Treasury Secretary Jack Lew that any debt in Puerto Rico that was issued in violation of the territory’s constitution “must be immediately set aside.”

Standard & Poor's Ratings Services said its ratings on $47.5 billion of tax-backed Puerto Rico (CC/Negative) debt are unchanged.

Puerto Rico Gov. Alejandro García Padilla may not run for reelection and may set up his secretary of state to succeed him, according to Puerto Rico rumors and news reports.

Puerto Rico Electric Power Authority's (PREPA; Caa3 negative) anticipated issuance of new securitization bonds would carry risks that are typical of utility cost recovery charge (UCRC) bonds that Moody's Investors Service rates, such as legislative risk, servicing risk, customer payment delay and default risk as well as event risk stemming from severe weather conditions, the agency says in a report which outlines how those risks might present themselves in the specific circumstances of PREPA and Puerto Rico.

Resident Commissioner Pedro Pierluisi, D-P.R. and others testifying at a Senate committee hearing on Puerto Rico on Thursday said that it’s possible that some of territory’s debt may be unconstitutional and, if that is the case, it should not be paid.

The Treasury Department’s Antonio Weiss on Thursday will ask Congress to move swiftly to provide expanded Chapter 9 bankruptcy protection to Puerto Rico, as well as its authorities, and to provide other relief to the territory as it faces dire fiscal and liquidity crises.

The Treasury Department's Antonio Weiss and Puerto Rico Gov. Alejandro Garcia Padilla will testify on Thursday before a Senate Committee on the territory's economy, debt and options that should be considered by Congress.

Puerto Rico's efforts for a consensual debt restructuring suffered a setback Wednesday, as talks between the Government Development Bank for Puerto Rico and a group of investors broke down.

Puerto Rico’s unemployment rate fell to the lowest level in seven years and three months in September.

Gov. Alejandro García Padilla’s proposal for a local Puerto Rico fiscal oversight and economic recovery board came under fire from financial industry analysts, who said a federally appointed board would have more credibility.

Analysts and bankers questioned the feasibility of a proposal to use a debt exchange to restructure Puerto Rico’s bonds that is under discussion by Treasury Department and territory officials.

Treasury Department and Puerto Rico officials are talking about a way to restructure the territory’s debt without bankruptcy or other legislation, according to sources familiar with the idea.

Puerto Rican civic, political, and business leaders from around the country met in Orlando Wednesday to rally for extending Chapter 9 bankruptcy to Puerto Rico public authorities but one speaker at the event urged caution in throwing support behind such a measure.