Puerto Rico

Puerto Rico’s just released quarterly financial report was more ominous than its previous ones.

Puerto Rico Gov. Alejandro García Padilla is planning a 10.4% cut in spending for the coming year's budget.

Puerto Rico Gov. Alejandro García Padilla, stung by the defeat of his plan to increase revenue with a value added tax, ridiculed the idea of defaulting on the island’s debt. At the same time, he called for talks with creditors.

Pension obligation bonds are land mines municipal issuers should avoid, according to Janney Capital Markets.

The Puerto Rico Electric Power Authority, the public corporation with more than $9 billion of debt that is working with bondholders on a plan to revamp its operations, said it hired Goldman Sachs as a "potential underwriter" to work with its advisors on a "potential financing transaction."

After Puerto Rico’s House of Representatives voted down a proposed tax reform that would have increased revenues, some legislators called for alternate approaches to balancing the government’s books.

The bondholders of the Puerto Rico Electric Power Authority announced they had agreed to extend their forbearance for 35 additional days.

Puerto Rico Gov. García Padilla expects to deliver an annual state of the commonwealth speech this week without offering a budget.

Standard & Poor’s downgraded the Puerto Rico Electric Power Authority to CCC-minus from CCC, saying that a default seemed inevitable within six months.

The Puerto Rico Electric Power Authority said that the bondholders' plan to revamp its business and avoid default was overly optimistic on costs.