U.S. PUBLIC FINANCE : TOPICS

Puerto Rico

On June 29, 2015, Standard & Poor’s Ratings Services lowered its rating on the Commonwealth of Puerto Rico to ‘CCC-.’ The outlook is negative on likelihood of default or distressed exchange.


ARTICLE U.S. Public Finance

Rating On Three Puerto Rico PFC Series Lowered To ‘D’ On Non-Payment

Standard & Poor's Ratings Services has lowered its rating on $1.0 billion of Puerto Rico Public Finance Corporation (PFC) series 2011A, 2011B, and 2012A bonds to 'D' from 'CC' following a payment default on the bonds as of the close of business Aug. 3, 2015, the first business day following the Aug. 1 stated due date, which fell on a Saturday.

ARTICLE U.S. Public Finance

Puerto Rico PFC Rating Lowered To 'CC'; All Puerto Rico Tax-Backed Debt Placed On CreditWatch Negative

Standard & Poor's Ratings Services has lowered its 'CCC-' rating on Puerto Rico Public Finance Corp. (PFC) series 2011A and B and series 2012 A bonds to 'CC' following non-appropriation of debt service by the legislature in the fiscal 2016 budget. We see default for this debt on its next debt service date, Aug. 1, 2015, as a virtual certainty.

ARTICLE Financial Institutions

Government Development Bank for Puerto Rico Downgraded To 'CC' From 'CCC-' On Imminent Default; Outlook Negative

This downgrade reflects our view that a default by Government Development Bank for Puerto Rico (GDB) in the near term is a virtual certainty. GDB has announced its intent to purchase its outstanding senior notes in the open market and in privately negotiated transactions through cash or exchange with new securities at a price the bank expects to be "materially less than par." 

ARTICLE U.S. Public Finance

Puerto Rico GO Rating Lowered To 'CCC-' From 'CCC+'; Outlook Is Negative On Likelihood Of Default Or Distressed Exchange

Standard & Poor's Ratings Services has lowered its general obligation (GO) rating on the Commonwealth of Puerto Rico to 'CCC-' from 'CCC+'. At the same time, Standard & Poor's has removed the GO rating from CreditWatch, where it was placed with negative implications on April 24, 2015, and assigned a negative outlook.