Puerto Rico

Puerto Rico's government is proposing lower rates for utilities that are rated junk or near junk, saying savings from fraud reduction, lower oil prices and other measures will make up for lost revenue.

In a move showing that Garvees, like Build America Bonds, are subject to the risk of federal offsets, the U.S. government has reduced transportation funds backing Puerto Rico's Garvees to make up for the Commonwealth's failure to pay money owed to a federal agency for river projects.

Despite overhauling its seriously underfunded pension system, Puerto Rico still faces myriad financial roadblocks, its new governor told investors Friday.

Puerto Rico's pension plan overhaul and Gov. Alejandro García Padilla's proposal to increase sales tax revenues are both credit positive, Moody's Investors Services said.

With some saying that the Puerto Rico Highways and Transportation Authority is teetering, muni market participants are wondering about its financial health.

The Puerto Rico Highways and Transportation Authority may default as soon as next week, El Nuevo Dia newspaper reports a Puerto Rico government official as saying.

Key Puerto Rico lawmakers in the governor's own party are saying they want changes to his proposed budget's revenue increases.

The Puerto Rico Government Development Bank, which provides loans to the U.S. territory's government and semi-autonomous authorities, is in a "fragile" position, the bank's president told legislators.

Morgan Stanley has hired former Puerto Rico Government Development Bank president Jorge Irizarry to attract public finance business in Puerto Rico.

Gov. Alejandro García Padilla is proposing an active role for the government in the commonwealth's economy.

Puerto Rico Gov. Alejandro García Padilla has proposed an 8% larger operating budget for the coming fiscal year.

Puerto Rico's "essential services" utility credits don't appear to offer investors a safe alternative to the commonwealth's general obligation debt.

On Thursday afternoon Fitch Ratings downgraded the Puerto Rico Aqueduct and Sewer Authority's senior revenue bonds to BBB-minus from BBB.

A Puerto Rico senator, who is in the same party as Gov. Alejandro García Padilla, is proposing widening the application of the commonwealth's sales tax.

Analysts are saying that when Puerto Rico comes to the market to sell bonds before July it will have to pay a high yield and will only succeed if it shows more progress towards fiscal health.

President Obama is proposing that Puerto Rico hold a plebiscite to determine its political status.

Most muni analysts say a default on Puerto Rico's general obligation debt is highly unlikely in the coming years, but they differ on the wisdom of holding the debt.

Late on Thursday night Puerto Rico's government passed a major pension reform into law.

Puerto Rico Gov. Alejandro García Padilla criticized the major ratings agencies Tuesday.

On Monday night the Puerto Rico House of Representatives and Senate approved bills to reform the commonwealth's main government pension plan.