COMMENTARY & MULTIMEDIA

  • Apr 24, 2015

We base the downgrade of Puerto Rico's tax-supported debt on our view that the commonwealth's market access prospects have further weakened and Puerto Rico's ability to meet its financial commitments is increasingly tied to the business, financial, and economic conditions on the island. 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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  • Apr 27, 2015

NEW YORK (Standard & Poor's) April 24, 2015--Standard & Poor's Ratings Services has lowered its rating on Puerto Rico Electric Power Authority's (PREPA) power revenue bonds to 'CCC-' from 'CCC'. The rating remains on CreditWatch with negative implications. The downgrade reflects our view of the following: Repeated draws on the debt service reserve fund and uncertainty regarding any future draws… 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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