Puerto Rico

Four of the five Puerto Rico authorities whose revenues were diverted to pay Government Development Bank of Puerto Rico notes on Dec. 1 are expected to make their own bond payments on Jan. 1. The exception may be the Puerto Rico Infrastructure Finance Authority.

The Republican chairs of three Senate committees that have jurisdiction over Puerto Rico and bankruptcy introduced a bill on Wednesday night that would establish an authority that could issue bonds and provide up $3 billion in resources to help Puerto Rico stabilize its budget and debt.

Puerto Rico Gov. Alejandro García Padilla signed a bill to create a fiscal supervisory board Tuesday.

The Puerto Rico Electric Power Authority and its creditors agreed Tuesday to extend deadlines in their Restructuring Support Agreement to Dec. 17.

The passed deadline casts doubt on the Puerto Rico Electric Power Authority’s prospects for a consensual debt restructuring agreement.

The Supreme Court has agreed to take up Puerto Rico's appeal of a lower court ruling that the commonwealth's local restructuring law is not allowable under federal bankruptcy law.

The FBI arrested 10 Puerto Rico officials and businessmen in a corruption probe, dealing a blow to the government as it looks to resolve its financial crisis.

Puerto Rico general obligation debt (CC/Negative) continues to remain highly vulnerable to default, in Standard & Poor's Ratings Services' view, despite payment in full by the Government Development Bank for Puerto Rico (GDB) of $354 million in scheduled debt service on Dec. 1, including $267 million of GDB note principal guaranteed by Puerto Rico, and the governor's release of an executive order that diverts revenue, which would otherwise support about $7 billion of non-GO debt issued by certain public corporations, to the payment of GO debt service.

Puerto Rico’s economic activity index rose 0.2% in October from September and 1% from October 2014.

Municipal investors said Puerto Rico’s $355 million Government Development Bank note payment and claw-back debt management plan did little to resolve the island’s debt crisis.