Puerto Rico

Puerto Rico will refund prior Puerto Rico Highways and Transportation Authority debt next week before heading to market with a combined new-money and refunding sales-tax bond deal.

The University of Puerto Rico is seeking more revenue from its student body to help close an estimated $166 million deficit for the upcoming school year and support capital projects.

MIAMI — With a clear need to invest in infrastructure and a large budget deficit, Puerto Rico is poised to launch its first public-private partnership projects.

After scrapping a plan to get more taxes from video lottery terminals, Puerto Rico officials must find $220 million from additional spending cuts and revenue initiatives before the end of the month to balance a proposed $9.2 billion fiscal 2011 budget.

An ongoing student strike at the University of Puerto Rico has placed the school semester on hold, but the standoff does not affect its ability to repay its $569 million of outstanding bonds, according to a university official.

Puerto Rico’s economic activity index for April increased by 0.8% over March, as payroll employment rose for the third month in a row.

The Puerto Rico Electric Power Authority today will issue nearly $325 million of tax-exempt new-money revenue bonds to pay down outstanding lines of credit with local banks in Puerto Rico.

Puerto Rico lawmakers are now reviewing Gov. Luis Fortuño’s plan to regulate video lottery terminals in order to generate $220 million of needed revenue for the fiscal 2011 budget.

The U.S. House of Representatives Thursday evening passed a bill that would allow Puerto Rico citizens to vote on the island's political status, including the option to become the 51st state.

In his first year in office last year, Puerto Rico Gov. Luis Fortuño reduced government spending and cut the island’s payroll while at the same time raising taxes and implementing property taxes.

Puerto Rico yesterday entered the single-A category as Moody’s Investors Service released its recalibrated A3 rating with a stable outlook for the commonwealth’s general obligation debt. The prior rating was Baa3 with a stable outlook.

Sen. Robert Menendez, D-N.J., yesterday joined the ongoing rum-tax revenue debate between Puerto Rico and the U.S. Virgin Islands by filing legislation that would limit subsidies to rum makers to 10% of a territory’s yearly rum-tax revenue.

Fitch Ratings yesterday released its recalibrated rating of BBB-plus on Puerto Rico Aqueduct and Sewer Authority bonds that are backed by the commonwealth’s guarantee, two notches above the previous rating.

The Puerto Rico Electric Power Authority Thursday will sell $850 million of tax-exempt, new-money bonds to pay down lines of credit that helped finance capital improvements.

Puerto Rico officials last week affirmed its estimate that the commonwealth will generate $7.67 billion of tax revenue in fiscal 2010, while at the same time its Planning Board projects the local economy will contract by 3.6% this year.

Lawmakers yesterday removed an amendment from the federal tax-extender bill that would have changed the way the federal government allocates rum-tax revenue to Puerto Rico and the U.S. Virgin Islands.

It’s far from closing time for the ongoing “rum war” between Puerto Rico and the U.S. Virgin Islands as a U.S. senator is seeking to distribute rum-tax revenue based on population rather than the amount of rum a territory produces, which is the current system.

SAN JUAN — Puerto Rico by the end of the year may select winning bidders to operate and maintain the airport in San Juan and three different toll roads on the island.

SAN JUAN — Nearly one year after Puerto Rico implemented its fiscal reconstruction plan to reduce operating costs, generate more tax revenue, and curtail borrowing, investors are both optimistic and cautious.

SAN JUAN — Puerto Rico faces a $14 billion unfunded pension liability and will not have sufficient funds available to pay retirees in eight years unless it implements reforms to the system, government officials warned Thursday.