Puerto Rico

The 60 Plus Association announced on Thursday that it is forming a coalition of small holders of Puerto Rico bonds that will push for the creation of a financial control board and oppose bankruptcy legislation for the territory.

Buy-side analysts and strategists offered recovery solutions for Puerto Rico ranging from eligibility for Chapter 9 bankruptcy to Congressional intervention and economic reform.

The Puerto Rico Electric Power Authority said Tuesday it had reached oil and natural gas purchase deals that will save it $55 million annually.

The U.S. Supreme Court is unlikely to take up the Commonwealth of Puerto Rico's recent request to consider a twice rejected law that would give Puerto Rican public entities debt relief similar to that under Chapter 9 bankruptcy, according to several bankruptcy experts.

Puerto Rico’s economy gained about 2,700 jobs in July from June, according to the Bureau of Labor Statistics.

Multiple factors are pressuring Puerto Rico's nonprofit universities and hospitals, Standard & Poor's said Thursday.

The President of the Government Development Bank for Puerto Rico sent a letter to representatives saying that the P.R. Public Finance Corp. nonpayment on Aug. 1 was not a default.

The chief of staff to Puerto Rico’s governor said that the exchange of Government Development Bank notes is the most likely approach to the government’s liquidity crunch.

Puerto Rico’s July General Fund tax revenues were 3.5% higher than budgeted, according to the Puerto Rico Treasury Department.

Over 100 local state-side government officials signed a letter calling for Puerto Rico to be allowed to declare bankruptcy.

Puerto Rico faces a $153 million cash deficit by December and a $512 million shortfall by June unless it takes additional financial measures, according to a consultant to the government.

Lobbying efforts more than doubled in the second quarter of this year over pending legislation that would give Puerto Rico utilities and authorities access to Chapter 9 bankruptcy protection.

Standard & Poor's Ratings Services said it has corrected by reinstating its D rating on Puerto Rico Public Finance Corp.'s series 2012A bonds due Aug. 1, 2015.

The Puerto Rico Aqueduct and Sewer Authority plans to sell a $750 million bond by the end of August, anticipating paying a roughly 10% interest rate.

The default by the Puerto Rico Public Finance Corporation is a credit negative for bond insurers MBIA Inc. and Assured Guaranty, who each have approximately $5 billion of exposure to the commonwealth, according to a report issued by Moody’s Investors Service.

Detroit's bankruptcy and Puerto Rico's default are similar to New York City's mid-1970s crisis, public finance veteran Richard Ravitch says.

Puerto Rico's recent decision to stop setting aside money for its general obligation bonds set off debate over how and whether the government will make its Jan. 1 GO payment.

Using dynamic scoring, the Joint Committee on Taxation has estimated that legislation to extend tax provisions, including several related to bonds and Puerto Rico, would result in only $86.56 billion of revenue losses, compared to its earlier estimated $96.95 billion.

Moody's Investors Service has reviewed the new restructuring proposal filed by the Puerto Rico Electric Power Authority (PREPA; Caa3 negative), which states that non-forbearing bondholders would recover 65%-70% of the original legal promise in cash, depending on maturity, and which makes default a virtual certainty.

Trading activity in the municipal market for the second quarter of this year was 14% higher than the previous quarter as well as the second quarter last year, with several Puerto Rico bonds among the most traded, according to the Municipal Securities Rulemaking Board.