Net revenues of the Puerto Rico Aqueduct and Sewer Authority, one of the public corporations given the ability to restructure debt under a new commonwealth law, came in 6% ahead of budget in fiscal 2014.
In late June Puerto Rico passed the Puerto Rico Debt Enforcement and Recovery Act, raising concerns about the financial health of the public corporations including PRASA.
PRASA announced its results recently in preliminary figures on its web site.
Total net revenues per the master agreement of trust for the fiscal year were $384.4 million versus the $363.2 million that was budgeted. These net revenues are after deducting operating expenses and expense capitalization.
The accumulated coverage ratio for the senior debt was 4.41 times, which is better than the budgeted 4.08 times.
The accumulated coverage ratio for the commonwealth guaranteed debt was 1.2 times, which was better than the budgeted 1.04 times.
Total debt service was $319.6 million, which was lower than the anticipated $348.8 million.
Finally, PRASA's available fund (excluding the surplus fund) was $64.9 million, better than the budgeted $14.4 million.
In late June PRASA chief executive officer Alberto Lazaro said PRASA was not considering using the restructuring law. "Our financial results and projections are healthy and sufficient to pay all projected expenses and debt service," Lazaro said.
