Puerto Rico

In this week's Muni Minute, we examine Puerto Rico's debt restructuring negotiations, which are scheduled to begin this week... if the bondholders show up.

Assured Guaranty Corp. formally requested that the Puerto Rico Oversight Board revoke certification of the 10-year fiscal plan on the grounds of material non-compliance with Puerto Rico Oversight Management and Economic Stability Act.

Gov. Ricardo Rosselló said creditors of the utility agreed to reduce debt service by $1.5 billion over five years.

Moody’s Investors Service downgraded $13 billion in Puerto Rico bonds on Wednesday, citing increasing pessimism about recoveries on the bonds.

A federal appeals court upheld a stay on debt-related lawsuits in a key Puerto Rico lawsuit, reversing a lower court decision.

Municipal bond insurer analysts are rechecking their estimates of potential losses in Puerto Rico after the federal control board approved a 10-year plan that assumes less than 24% of debt coming due will be repaid.

The Puerto Rico Oversight Board is seeking to start debt talks on April 13.

Puerto Rico Gov. Ricardo Rosselló said that his government had agreed to a five day extension of the agreement with Puerto Rico Electric Power Authority creditors.

Puerto Rico bondholders and bond insurers repeated a request to the Puerto Oversight Board to initiate immediate debt negotiations.

The head of the U.S. House Subcommittee that oversees Puerto Rico sent a letter to the island’s governor urging him to accept the already negotiated PREPA deal.