Puerto Rico

Puerto Rico officials expect the island’s economy will again contract in fiscal 2011, a reversal from earlier projections that gross domestic product would increase this year at a modest rate of 0.4%.

José Otero-Freiria was only into his second week as the new debt-financing chief at the ­Government Development Bank for Puerto Rico when the commonwealth headed to the market with a general obligation refinancing deal.

Standard & Poor’s cited better-than-expected excise-tax collections in boosting Puerto Rico’s $9.2 billion of general obligation debt to BBB from BBB-minus.

Puerto Rico wants to transform more than 70 acres of rundown waterfront and industrial space in San Juan into a mixed-use community anchored by a major ­destination hotel to generate tourism in the area.

When Luis Fortuño became governor of Puerto Rico in January 2009, he promised to reduce spending, cut the government’s payroll, end structural deficits, and set realistic revenue projections.

Juan Carlos Batlle, managing director of Santander Securities Corp. will succeed Carlos Garcia as president of the Government Development Bank for Puerto Rico, effective March 2.

Puerto Rico this week will issue $85 million of general obligation refunding bonds that will restructure debt to help lower debt-service costs in the current fiscal year.

Puerto Rico Gov. Luis Fortuño ­Monday signed into law a tax-reform initiative that could provide $1.2 billion of annual tax relief for families and corporations for the next six years.

Fitch Ratings late Wednesday assigned its first-ever rating to Puerto Rico general obligation bonds, giving them a BBB-plus. The outlook for the $9.2 billion of GOs is stable. The bonds now have a rating from all three major rating agencies.

In an effort to get more merchants to collect and pay sales taxes to the government, Puerto Rico plans to turn sales receipts there into lottery tickets.

Puerto Rico's July-through-October revenue collections are nearly on target, with receipts coming in just $1 million below budgeted estimates.

Standard & Poor’s Monday revised its outlook on Puerto Rico’s $9 billion of general obligation debt to positive from stable as the commonwealth plans to issue up to $350 million of tax-exempt GO bonds to restructure existing debt and refinance variable-rate bonds.

Piper Jaffray & Co. issued a report last week warning of the potential investment risks in Puerto Rico if it does not address its pension fund challenges.

Puerto Rico officials are looking to sell on Nov. 23 up to $350 million of tax-exempt general obligation bonds that will restructure debt and refinance variable-rate bonds.

Puerto Rico Gov. Luis Fortuño Monday evening released an expansive tax-reform initiative to slash individual and business taxes by $1.2 billion per year, on average, between 2011 and 2016.

A special commission last week recommended that Puerto Rico strengthen its pension systems by increasing employer and worker contributions, raising the retirement age, and placing limits on pension benefits, among other measures.

The Puerto Rico Electric Power Authority will sell $200 million of tax-exempt refunding debt early next week to generate interest-rate savings.

The Puerto Rico Public-Private Partnerships Authority announced its short list of four consortiums Wednesday that may submit proposals in a potential long-term lease agreement involving the island’s busiest toll road.

Puerto Rico should consider cutting employee benefits, boosting employee contributions and implementing a special tax to shore up its pension system, according to a report Wednesday from the Center for the New Economy.

Moody’s Investors Service Tuesday revised Puerto Rico’s general obligation credit to negative from stable, affecting about $29 billion of outstanding debt, as the commonwealth’s pension system is only 9.8% funded and carries a $17 billion liability.