Puerto Rico and its related entities did not default on any of their principal payments during October although eight borrowers failed to pay interest when due. Cumulative principal defaults through October are USD 2.5bn.
On 20 September, Hurricane Maria made landfall in Puerto Rico, resulting in extensive and widespread damage. The island’s economic base, weak even before the storm occurred, was devastated. Federal aid, insurer payments, and related rebuilding will provide a measure of economic activity, but it’s not yet apparent to what level revenues for debt repayment will be generated.
This monthly report captures principal defaults, reserve fund draws, and related events of every Puerto Rico obligor for which we have relevant data.
Our sources for this information include commonwealth disclosures to the Electronic Municipal Market Access system, commonwealth financial statements and other documents, and Debtwire‘s reporting.
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by Greg Clark