Puerto Rico

Moody's said Puerto Rico Gov. García Padilla's proposed budget is a credit positive but that the commonwealth government still has potential challenges.

The Puerto Rico Department of the Treasury said it does not owe Doral Financial Corporation $230 million, as the bank has been claiming.

Puerto Rico's weak economy and the commonwealth's government are continuing to pressure Puerto Rico banks, Moody's Investors Service said Tuesday.

Puerto Rico's Doral Financial Corp., which ratings agencies believe may be near bankruptcy, is demanding Puerto Rico's Treasury Department pay it $230 million immediately.

Puerto Rico's April revenues came in 26% below government projections, largely because corporate taxes came in $380 million short.

Puerto Rico-based Doral Financial Corp. is likely to default on more than $150 million in municipal notes and bonds, ratings agencies said.

The Puerto Rico government's recently released four-year economic plan covers many policies besides strictly economic initiatives, notably education and energy.

The Federal Reserve is studying Puerto Rico as an indicator of the level of risk in the muni market, where heavy retail investor presence can make behavior unpredictable, an economist with one its banks told municipal analysts on Thursday.

Puerto Rico plans to sell a $500 million municipal sales tax based bond in fiscal year 2015.

Puerto Rican investors in municipal bond closed-ended funds run by UBS AG, Banco Popular and Popular Securities sued the firms.