COMMENTARY & MULTIMEDIA

  • Feb 12, 2015

NEW YORK (Standard & Poor's) Feb. 12, 2015--Standard & Poor's Ratings Services has lowered its general obligation (GO) rating on the Commonwealth of Puerto Rico to 'B' from 'BB'. The outlook is negative. In addition, Standard & Poor's has lowered its ratings on: Puerto Rico Sales Tax Financing Corp.'s (COFINA) first-lien sales tax bonds to 'B' from 'BBB'; COFINA's second-lien sales tax bonds to… More

  • Jan 22, 2015

NEW YORK (Standard & Poor's) Jan. 22, 2015--Standard & Poor's Ratings Services today said that although it believes Puerto Rico Governor Alejandro Garcia Padilla's recent signing of a bill to increase the Commonwealth of Puerto Rico' s petroleum tax to $15.50 from $9.25 per barrel will have no immediate effect on rated bond credit quality, there could still be a muted effect on the island economy. More

  • Jul 31, 2014
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Standard & Poor's Ratings Services has lowered its rating on Puerto Rico Electric Power Authority's (PREPA) power revenue bonds two notches to 'CCC' from 'B-'. The rating remains on CreditWatch with negative implications, where we originally placed it June 18, 2014. PREPA has $8.3 billion of power revenue bonds outstanding. A pledge of the electric system's net revenues secures the bonds. The… More

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  • Jul 24, 2014
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Government Development Bank for Puerto Rico could suffer significant losses due to the passing of the Puerto Rico Public Corporation Debt Enforcement Act. Associate Director Sunny Newsome explains the factors behind our recent rating action on the GDB and other recent events in Puerto Rico. Watch

  • Jul 14, 2014
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The recent credit deterioration of Puerto Rico's public corporations and enactment of legislation that would enable some of the entities to restructure their debt have prompted investor questions on the potential impact on bond insurer ratings. In this article, we provide answers to the most frequently asked questions. More

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  • Jul 11, 2014

Spread Sheet of various Puerto Rico credits downgraded and removed from CreditWatch. More

  • Jul 09, 2014
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We have lowered our rating on Puerto Rico Electric Power Authority's (PREPA) power revenue bonds four notches to 'B-' from 'BB'. The rating remains on CreditWatch with negative implications, where we originally placed it on June 18, 2014. More

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  • Jun 27, 2014
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We have placed our general obligation (GO) and appropriation debt ratings on the Commonwealth of Puerto Rico on CreditWatch with negative implications. We have also placed our debt ratings on the Puerto Rico Employee Retirement System, the Puerto Rico Infrastructure Financing Authority, the Puerto Rico Convention Center District Authority, the Puerto Rico Highways and Transportation Authority,… More

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  • Feb 10, 2015

NEW YORK (Standard & Poor's) Feb. 10, 2015--Standard & Poor's Ratings Services today said that its ratings on Puerto Rico Electric Power Authority (PREPA; CCC/Watch Neg) and Puerto Rico Aqueduct and Sewer Authority (PRASA; senior-lien rating: BB-/Negative) are unaffected by a court ruling that the Puerto Rico Public Corporations Debt Enforcement and Recovery Act is unconstitutional. Standard &… More

  • Nov 07, 2014

Although liquidity and fiscal concerns are weighing on the credit quality of the Commonwealth of Puerto Rico (BB/Negative), Standard & Poor's Ratings Services believes underlying economic trends are the root cause of the island's credit problems. In fact, it's Puerto Rico's poor economic growth prospects that remain a key factor in Standard & Poor's speculative-grade general obligation (GO)… More

  • Jul 31, 2014
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Standard & Poor's Ratings Services said today its ratings on the Government Development Bank for Puerto Rico (GDB; BB-/Negative/B) remain unchanged after the Commonwealth of Puerto Rico released a quarterly report on July 17 related to its ability and willingness to repay its debt obligations. We examined Puerto Rico's updated quarterly disclosure and projected liquidity position. The current… More

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  • Jul 31, 2014
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Standard & Poor's Ratings Services has affirmed its 'BB' general obligation (GO) and 'BB-' appropriation ratings on the Commonwealth of Puerto Rico following an examination of Puerto Rico's enacted fiscal 2015 budget, updated quarterly disclosure, and current and projected liquidity position. The outlook is negative. "We believe that the combined cash position of the commonwealth and the… More

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  • Jul 24, 2014
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The credit deterioration of Puerto Rico's public corporations and recent legislative changes have raised investor concerns relating to the bond insurers. Director David Veno discusses the exposure different bond insurers have to Puerto Rican issuers. Watch

  • Jul 11, 2014
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The rating actions follow the enactment of the Puerto Rico Public Corporation Debt Enforcement Act (the Act), which allows certain Puerto Rican public corporations and other instrumentalities of the commonwealth to seek protection from creditors through a debt restructuring. Although the Act specifically excludes GO, general fund appropriation secured, and COFINA secured debt, it could… More

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  • Jun 27, 2014
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The rating action reflects the risk to bondholders posed by the law passed by the legislature of Puerto Rico. If signed by the governor, the law allows public corporations, among other things, to "adjust their debts in the interest of all creditors affected thereby; provides procedures for the orderly enforcement and, if necessary, the restructuring of debt in a manner consistent with the… More

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  • May 19, 2014
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In recent years, most Puerto Rico-based commercial banks have made some progress in reducing problem assets, improving their funding profiles, and returning to profitability, after experiencing significant net losses from 2007 through 2010. However, these banks continue to grapple with weak loan performance, margin pressures, intense competition, as well as some reliance on wholesale funding. More

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  • May 21, 2014
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Puerto Rico’s banks continue to grapple with regulatory challenges, a high level of bad loans, and some reliance on wholesale funding. Other hurdles include the weak local economy and the Commonwealth’s fiscal deficit. In this CreditMatters TV segment, Standard & Poor’s Director Robert Hansen, CFA… Watch

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