Puerto Rico

The Puerto Rico Electric Power Authority today will issue nearly $325 million of tax-exempt new-money revenue bonds to pay down outstanding lines of credit with local banks in Puerto Rico.

Puerto Rico lawmakers are now reviewing Gov. Luis Fortuño’s plan to regulate video lottery terminals in order to generate $220 million of needed revenue for the fiscal 2011 budget.

The U.S. House of Representatives Thursday evening passed a bill that would allow Puerto Rico citizens to vote on the island's political status, including the option to become the 51st state.

In his first year in office last year, Puerto Rico Gov. Luis Fortuño reduced government spending and cut the island’s payroll while at the same time raising taxes and implementing property taxes.

Puerto Rico yesterday entered the single-A category as Moody’s Investors Service released its recalibrated A3 rating with a stable outlook for the commonwealth’s general obligation debt. The prior rating was Baa3 with a stable outlook.

Sen. Robert Menendez, D-N.J., yesterday joined the ongoing rum-tax revenue debate between Puerto Rico and the U.S. Virgin Islands by filing legislation that would limit subsidies to rum makers to 10% of a territory’s yearly rum-tax revenue.

Fitch Ratings yesterday released its recalibrated rating of BBB-plus on Puerto Rico Aqueduct and Sewer Authority bonds that are backed by the commonwealth’s guarantee, two notches above the previous rating.

The Puerto Rico Electric Power Authority Thursday will sell $850 million of tax-exempt, new-money bonds to pay down lines of credit that helped finance capital improvements.

Puerto Rico officials last week affirmed its estimate that the commonwealth will generate $7.67 billion of tax revenue in fiscal 2010, while at the same time its Planning Board projects the local economy will contract by 3.6% this year.

Lawmakers yesterday removed an amendment from the federal tax-extender bill that would have changed the way the federal government allocates rum-tax revenue to Puerto Rico and the U.S. Virgin Islands.