Junk bonds

The authority will borrow to pay off its debt at about 50 cents on the dollar.

Except for the riskiest sectors, high-yield credit fundamentals appear to be strong, but rising interest rates and fund outflows are dampening primary and secondary market activity.

A letter of credit would be used, in part, to help fund a settlement between WAPA and its fuel supplier Vitol.

Two ratings agencies expect AES Puerto Rico to default on Puerto Rico municipal conduit bonds.

At issue is the completion of a WAPA financial settlement with its fuel supplier, Vitol, to which it owes about $278 million.

The authority hopes to have solar and wind provide 30% of the islands' electricity within two years.

The rating action affects $423 million in bonds and certificates of participation. The territory's issuer rating was affirmed at speculative-grade Ba1.

The bill's sponsor pointed to board members' need for expertise.

The authority's issues hamper the USVI economy, Gov. Bryan says in his state of the territory speech.

These would be the territory's first general obligation bond issuance since 2019.