U.S. Virgin Islands

After next fiscal year, the governor expects both revenues and spending to increase.

Analysts agree with Moody's that the island still faces financial risks.

The system is seeking about $7.7 million of past due contributions and loans.

The long bond on the exempt $955 million tranche have traded stronger in the secondary market since pricing.

Investors pulled more from municipal bond mutual funds in the latest week, with Refinitiv Lipper reporting $2.038 billion of outflows, up from $1.503 billion of outflows in the previous week.

Holders tendered about 75% of U.S. Virgin Islands Public Finance Authority bonds that were eligible for a tender offer.

The Virgin Islands Public Finance Authority and Matching Fund Special Purpose Securitization Corporation plans to price $793.025 million of tax-exempt and $124.960 million of taxables.

The USVI government intends to refund the remainder of its outstanding bonds at the end of March.

If all goes to plan, officials say the deal would prevent the islands' pension system from running out of money.

Virgin Islands Sen. Kurt Vialet said he expects the legislature to approve the refunding bill by Monday. The current bill does not include an interest rate cap that killed a refunding deal attempted in September 2020.

While challenges abound — shuttered industries, outmigration and COVID — there are positive signs the territory’s economy can be boosted.

The territory’s economy has continued to struggle in the past two years, with the islands’ employment down 9.5%.

This would be fourth attempt to refund the islands' debts. Moody's Investors Service projects the island's pension fund will run out of cash by the start of fiscal 2024.

While the U.S. continues to lag pre-pandemic levels, Puerto Rico is now ahead by 2.3% from November 2019.

The $35 million of tax-exempt and taxable notes were privately placed with Nuveen.

The governor wants to use savings to address the islands' $3.3 billion pension underfunding.

The government is also hoping an outside company will take over the Limetree oil refinery in St. Croix.

If residents become eligible for the government money, it would increase income and spending, providing a lift to the commonwealth's economy.

The fight between the governor and the legislature over control of the beleaguered utility is heading to the local Superior Court.

His bill follows unsuccessful efforts by the territory's Senate to increase oversight of its Water and Power Authority.