Speculative grade bonds

Moody's says the cut is a credit negative for the U.S. Virgin Islands' matching fund bonds.

The pension system has sued WAPA demanding immediate payment of more than $2 million in employee contributions.

She expects $50 million more in revenues in fiscal 2023.

Incumbent Gov. Albert Bryan Jr. will face Sen. Kurt Vialet in a gubernatorial general election in November.

Ownership issues seem to be worked out, more or less, but reopening the refinery remains in doubt.

The board also approved a rollover of bond anticipation notes because it doesn't have access to the bond market.

After next fiscal year, the governor expects both revenues and spending to increase.

While expenditures also grew, revenues came in 4.5% higher than projections and were higher than the authority's cost growth.

Analysts agree with Moody's that the island still faces financial risks.

The system is seeking about $7.7 million of past due contributions and loans.

Holders tendered about 75% of U.S. Virgin Islands Public Finance Authority bonds that were eligible for a tender offer.

The Virgin Islands Public Finance Authority and Matching Fund Special Purpose Securitization Corporation plans to price $793.025 million of tax-exempt and $124.960 million of taxables.

The USVI government intends to refund the remainder of its outstanding bonds at the end of March.

The restructuring is on track to occur March 15, officials said.

If all goes to plan, officials say the deal would prevent the islands' pension system from running out of money.

Virgin Islands Sen. Kurt Vialet said he expects the legislature to approve the refunding bill by Monday. The current bill does not include an interest rate cap that killed a refunding deal attempted in September 2020.

While challenges abound — shuttered industries, outmigration and COVID — there are positive signs the territory’s economy can be boosted.

The junk-rated Chicago Public Schools sold $872 million of new-money and refunding bonds into a rockier market for high-yield paper Thursday.

The $35 million of tax-exempt and taxable notes were privately placed with Nuveen.

The governor wants to use savings to address the islands' $3.3 billion pension underfunding.