Puerto Rico

Credit spreads on Puerto Rico's general obligation bonds have widened by as much as 70 basis points from the beginning of the year, while similarly rated bonds have seen spreads narrowing.

After Standard & Poor's warned of a downgrade last month, Fitch Ratings has affirmed its rating on the Employees Retirement System of the Commonwealth of Puerto Rico's senior pension funding bonds.

Puerto Rico's debt load, exceeding $60 billion, and pension liabilities are a challenge to the island's fiscal ability and investors should limit their exposure, cautions Alan Schankel of Janney Capital Markets.

Standard & Poor's revised the outlook to negative from stable on the Employees Retirement System of Puerto Rico, saying a downgrade is possible if the commonwealth does not address the pension problem in the next year.

The commonwealth awards a $2.6 billion contact after bidding that attracted some of investment banking's biggest names.

Aerostar Airport Holdings and Gruopo Aeuropuertos Avance submitted their proposals for a public-private partnership to run the Luis Muñoz Marín International Airport this week.

Moody's Investors Service upgraded the Puerto Rico Industrial Development Company's general purpose revenue bonds to Baa1 from Baa2 and change the outlook to stable, based on stable revenue and debt service coverage.

Standard & Poor's revised the Government Development Bank of Puerto Rico's outlook to negative from stable.

More Puerto Rico bonds are coming to market on Tuesday in a $78 million sale of higher education revenue debt and revenue refunding bonds.

Around $600 million of Puerto Rico bonds are coming to the market on Thursday, one day after Standard & Poor's revised the commonwealth's outlook to negative.