Gov. Alejandro García Padilla froze the transfer of revenues from the Puerto Rico Highways and Transportation Authority to its bonds, making the commonwealth the biggest technical defaulter in U.S. municipal history.

The governor’s order Wednesday, which uses the recently signed Puerto Rico moratorium law as its basis, affects all of the authority’s debt. As of August 2015 the PRHTA had $6.1 billion in bond debt outstanding, of which $2.4 billion wasn't insured.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.