U.S. Virgin Islands

The effects could hit island economies, like those of Puerto Rico and the U.S. Virgin Islands, whose bonds are speculative grade partly because of fiscal concerns.

KBRA said the negative outlook reflects declining coverage of maximum annual debt service coverage from both a lower tax rate and declining rum sales.

Management is hiring a municipal advisor to evaluate its financial strategy.

The introduction of new engines in a northern power plant and the opening of a solar farm in the south have reduced the authority's operating costs.

Observers say the decision may be a credit positive for the financially struggling utility

The governor says borrowing $50 million is "imperative" but the senate majority leader says "continuing to borrow is not the answer."

New facilities should reduce and ultimately eliminate the authority's current $5 million a month operating loss.

Karl Knight worked as chief of staff for U.S. Virgin Islands Gov. Albert Bryan Jr.

The Water and Power Authority got good financial news from the U.S. Federal Emergency Management Agency but bad financial news from a federal court in Puerto Rico.

The WAPA board of directors says it is looking for a replacement who would start on July 1, when Andrew Smith says he will depart.