|
|
|
|
Search: 
Latin American Herald Tribune
Venezuela Overview
Venezuelan Embassies & Consulates Around The World
Sites/Blogs about Venezuela
Venezuelan Newspapers
Facts about Venezuela
Venezuela Tourism
Embassies in Caracas

Colombia Overview
Colombian Embassies & Consulates Around the World
Government Links
Embassies in Bogota
Media
Sites/Blogs about Colombia
Educational Institutions

Stocks

Commodities
Crude Oil
US Gasoline Prices
Natural Gas
Gold
Silver
Copper

Euro
UK Pound
Australia Dollar
Canada Dollar
Brazil Real
Mexico Peso
India Rupee

Antigua & Barbuda
Aruba
Barbados
Cayman Islands
Cuba
Curacao
Dominica

Grenada
Haiti
Jamaica
Saint Kitts and Nevis
Saint Lucia
Saint Vincent and the Grenadines

Belize
Costa Rica
El Salvador
Honduras
Nicaragua
Panama

Bahamas
Bermuda
Mexico

Argentina
Brazil
Chile
Guyana
Paraguay
Peru
Uruguay

What's New at LAHT?
Follow Us On Facebook
Follow Us On Twitter
Most Viewed on the Web
Popular on Twitter
Receive Our Daily Headlines


  HOME | Caribbean

S&P Downgrades Puerto Rico’s Debt to Default

SAN JUAN – Standard & Poor’s on Thursday downgraded Puerto Rico’s general obligation, or GO, bonds from CC to D (default), its lowest possible level, after the U.S. commonwealth’s government missed payment on nearly $780 million worth of that constitutionally guaranteed debt.

S&P announced the ratings action in a statement Thursday, recalling that Puerto Rico on July 1 failed to pay $779 million owed to holders of GO bonds, which are directly issued by the island’s government and are supposed be repaid even before covering the cost of essential services, such as education, police and sanitation.

The U.S. commonwealth, which has a massive debt load of more than $70 billion and has been in recession for most of the last decade, had earlier defaulted on bonds issued by different government agencies.

The July 1 default occurred after more than two years of debt-restructuring talks with investors and just hours after President Obama signed a law installing a financial control board to restructure the island’s debt and providing a retroactive stay on lawsuits by bondholders.

Fitch Ratings downgraded Puerto Rico’s credit rating to default on Tuesday for the same reason, while Moody’s Investors Service on July 1 revised its outlook on Puerto Rico from negative to developing due to the new law, known as the PROMESA Act.

Moody’s said that law reduces the “risk of protracted litigation” but noted that the “oversight board created by PROMESA will have “wide authority in shaping how an eventual debt restructuring plays out.”

That board could prioritize pensions and reduce possible debt recovery prospects, it said.

In a move tied to the creation of the control board, Puerto Rican Gov. Alejandro Garcia Padilla announced Thursday that Melba Acosta, the island’s head negotiator in debt-restructuring talks, chief financial officer and the president of the U.S. commonwealth’s Government Development Bank, would resign from service effective July 31.

Garcia Padilla gave no reason for her resignation but praised her for her “enormous contributions” in getting Puerto Rico back on the road to fiscal responsibility.

 

Enter your email address to subscribe to free headlines (and great cartoons so every email has a happy ending!) from the Latin American Herald Tribune:

 

Copyright Latin American Herald Tribune - 2005-2018 © All rights reserved