Puerto Rico

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.

SAN JUAN, P.R. — Puerto Rico is seeking a one-notch upgrade to its general obligation rating by the first quarter of 2011 and a potential boost to its outlook as the territory plans to issue more than $7.2 billion of refunding and new-money debt in 2010.

The Puerto Rico Sales Tax Financing Corp. Wednesday plans to sell $1.4 billion of subordinate sales-tax bonds that will finance the commonwealth’s stabilization fund and help balance the current fiscal 2010 budget.

Puerto Rico's fiscal 2010 revenue collections through October came in $33 million above budgeted revenues, due in part to better than expected business-tax receipts and a temporary property tax hike.

The Puerto Rico Public Private Partnerships Authority will pull together a team of advisers to assist it in implementing P3 transactions and releasing requests for proposals related to specific assets.

Puerto Rico this week restructured $375 million of general obligation debt to achieve near-term savings and reduce fiscal 2010 GO debt service by $198 million.

Moody’s Investors Service yesterday changed the outlook on the Puerto Rico Port Authority to negative from stable as the it faces $210.5 million of bank debt that will come due in fiscal 2010.

Government workers in Puerto Rico held a one-day strike on Thursday to protest Gov. Luis Fortuño’s plan to reduce the commonwealth’s workforce by 17,000 to help close a $3.2 billion structural budget deficit.

Fitch Ratings Monday downgraded the Puerto Rico Electric Power Authority to BBB-plus from A-minus as the island’s sole electric provider plans to head to market this year with an $850 million new-money deal. The outlook is stable.

Puerto Rico is moving ahead with a long-time initiative to revamp 100 acres of waterfront property between historic Old San Juan and the center of the city.