Puerto Rico

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.

Puerto Rico’s tax overhaul plan took shape this week as the commonwealth’s financial authority warned of a likely government shutdown within three months due to a lack of liquidity and ability to sell bonds.

Puerto Rico banking firm OFG Bancorp said its subsidiary Oriental Bank was placing a $200 million line of credit with the Puerto Rico Electric Power Authority on non-accrual status.

The creditors of the Puerto Rico Electric Power Authority extended their forbearance to the authority by 15 days on Wednesday.

With the forbearance agreement between Puerto Rico Electric Power Authority and its bondholders scheduled to elapse in hours, the two sides were arguing Wednesday about how the agreement should be continued.

Puerto Rico Electric Power Authority chief restructuring officer Lisa Donahue said she has not made a decision yet about whether she will seek a restructuring of the authority’s debt.

Puerto Rico Electric Power Authority bondholders have offered to extend their forbearance agreement with PREPA for another 30 days, according to a public relations firm for PREPA forbearing bondholders.

Puerto Rico Electric Power Authority chief restructuring officer Lisa Donahue will testify before a Puerto Rico Senate committee Tuesday morning.

The Puerto Rico Treasury’s revenues came in 3.4% below projections.