Puerto Rico

The Senate Finance Committee on Tuesday approved a bipartisan, modified, two-year tax extenders bill that includes several provisions relating to bonds and Puerto Rico.

Puerto Rico’s total employment declined by 0.7% in June from May on a seasonally adjusted basis.

Municipal Market Analytics professionals Monday said it was “quite reasonable” to expect that the Puerto Rico Public Finance Corp. will make its debt service payments on Aug. 1.

Standard & Poor's Ratings Services said it has lowered its CCC-minus rating on Puerto Rico Public Finance Corp. (PFC) series 2011A and B and series 2012 A bonds to CC following non-appropriation of debt service by the legislature in the fiscal 2016 budget.

Puerto Rico's longstanding and deepening fiscal challenges led most closed-end municipal bond funds (CEF) to reduce holdings of the debt of the commonwealth, protecting the majority of these funds from substantial negative effects, says Fitch Ratings.

The Senate Finance Committee is pressing Treasury Secretary Jack Lew for positions on Puerto Rico, including whether it supports giving the troubled territory the ability to allow its public entities to file for bankruptcy protection under Chapter 9.

The Puerto Rico Aqueduct and Sewer Authority is "optimistic" it can sell a bond by the end of August, raising money to repay a bank line and make capital improvements.

Puerto Rico's approved budget allocation for appropriation and GDB debt is 19% short of the amount requested by the governor.

The Puerto Rico Electric Power Authority extended its contract with restructuring consulting firm AlixPartners to mid-November.

Sens. Chuck Schumer, D-N.Y., and Richard Blumenthal, D-Conn., unveiled a bill on Wednesday to allow Puerto Rican public entities to declare Chapter 9 bankruptcy.