Standard & Poor’s Places Puerto Rico Highway Bonds on Negative Watch

Above: Puerto Rico

By the Caribbean Journal staff

New York-based Standard & Poor’s has placed a group of highway-related bonds in Puerto Rico on CreditWatch with negative implications, citing insufficient reporting.

The bonds, which include a BBB+ rating on the Puerto Rico Highway & Transportation Authority’s highway revenue bonds, a BBB rating on the PRHTA’s senior transportation revenue bonds and a “BBB-” rating on PRHTA’s subordinate transportation revenue bonds.

“The CreditWatch placement follows PRHTA’s lack of timely and satisfactory information to us to maintain our ratings in accordance with our criteria and policies,” said David Hitchcock, credit analyst at Standard & Poor’s. “While
commonwealth officials provided information yesterday, we have yet to determine if this information is sufficient for us to maintain our ratings on the authority.”

S&P said it would likely resolve the CreditWatch placement by Jan. 15, once the firm has an “opportunity to review the information provided to us, and determine if we will make changes to our existing ratings on PHRTA.”