U.S. Virgin Islands

A majority of the USVI Senate are sponsoring a bill to give the Public Services Commission near total control over the islands' financially troubled water and power authority.

Moody's says that the pension system will likely run out of money in fiscal year 2024.

The authority's board will be replacing two leaders.

The pension system is in an “accelerating death spiral,” he said. In contrast, he offered good news about the territory's water and power authority.

The Senate will have a special session on the deal, which does not include a previously mandated interest rate cap, on Tuesday, Dec. 8.

Gov. Albert Bryan Jr. is working with the territory's lawmakers on an internet sales tax and other revenue ideas to avoid a 42% pension benefit cut on Jan. 1.

A Senate imposed 3.75% interest rate cap was a major obstacle to completing the deal.

A group of pensioners is trying to stop the bond sale.

Moody's rates the corporation's current bonds junk-level Caa2 and Caa3, but Kroll has given the new, rum-revenue-backed bonds an investment grade BBB rating.

The transaction would affect about 54% of the government's outstanding bond debt.