Puerto Rico Aqueduct and Sewer Authority said it doesn't anticipate restructuring its debt under a planned restructuring law for the commonwealth's public corporations.
"Puerto Rico Aqueduct and Sewer Authority does not consider necessary the use of the restructuring law," PRASA chief executive officer Alberto Lazaro, said in an email. "Our financial results and projections are healthy and sufficient to pay all projected expenses and debt service. Our debt service reserves are properly funded as required by the master agreement of trust (MAT). PRASA reviewed its rates on July 2013; such rates are sufficient and will generate enough revenues to cover all our obligations and some reserves. Also, if necessary, PRASA has the ability to adjust its rates (4.5% per year) beginning in fiscal 2018."
The yield on PRASA bonds surged to 43% Wednesday, according to Interactive Data, as the law moved through the Puerto Rico legislature.
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