Puerto Rico

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.