Puerto Rico

The Puerto Rico Oversight Board extended the deadline for Gov. Rosselló to submit the FY2018 budget by two weeks.

The Puerto Rico Electric Power Authority said Monday it is seeking approval from the Oversight Board for its deal with its creditors that was reached outside the court supervised restructuring that's underway for other issuers in the territory.

The Oversight Board certified a Title III filing for the Puerto Rico Sales Tax Financing Corp., affirming that its $17.9 billion of revenue bonds will be subject to court supervised restructuring along with other territorial debt.

Last week’s filing of Title III by the Oversight Board, which sets the stage for a court-supervised reorganization of Puerto Rico’s debt, was just the start of a critical series of decisions for investors in the commonwealth’s bonds. There may be developments on several Puerto Rico fronts this week.

Puerto Rico Gov. Ricardo Rosselló and his financial advisors are insisting that the Title III judge cannot review the amount of debt that Puerto Rico will pay in the next ten years.

Judge Laura Swain of New York was chosen to oversee Puerto Rico's Title III restructuring process.

Bond insurers Assured Guaranty, Assured Guaranty Municipal and National Public Finance Guarantee filed a challenge to Puerto Rico’s certified fiscal plan.

Puerto Rico's government and oversight board will both have roles, said board member David Skeel.

The Oversight Board filed the petition with U.S. District Court in Puerto Rico.

Fitch Ratings said it has downgraded Puerto Rico Aqueduct and Sewer Authority bonds to C from CC.