U.S. Virgin Islands

Analysts say the development is another sign of financial stress at the beleaguered utility.

Virgin Islands Gov. Albert Bryan Jr. said the government is exploring various revenue streams to support the islands' pension system.

The governor said that the government must now move toward a long-term solution to WAPA's problems.

U.S. Virgin Islands Gov. Albert Bryan forged an agreement with lawmakers to work collaboratively in identifying funding for outstanding debt tied to the island’s Water and Power Authority.

It also orders a cut to a customer charge for fuel.

A declaration would be a first step toward dealing with the insolvency of the Water and Power Authority, with $252 million of bonds outstanding.

Moody's says the adoption of an on-time budget along with audited financials are positive developments.

A proposal for a rate increase to back a bond got a hostile reception.

Moody's action followed Fitch putting the authority on ratings watch negative on Friday.

The islands' representative to Congress called for the local government to declare an emergency, possibly affecting $633 million of WAPA debt.