A classificação de crédito do Commonwealth cai

On June 3, 2005, Caribbean Business (Georgianne Ocasio Teissonniere) reported that, in less than a week, Moody’s Investors Service and Standard & Poor’s (S&P) published a series of reports converging on concern over the Commonwealth’s fiscal deficit and high government spending. The note recalls that in February CB had anticipated that the large deficit inherited from the Sila Calderón administration (estimated up to $2 billion), elevated debt and an underfunded pension plan would push a credit-rating downgrade.

S&P cut Puerto Rico general-obligation (GO) bonds from A− to BBB, citing structural imbalance, disappointing spending controls (education, security, health and human services), thin reserves, recurrent use of short-term GDB loans, lack of a multi-year financial plan and inability to agree on the FY2006 budget and tax-reform details. The outlook remained negative. In a parallel report, S&P cut GDB to BBB+/A-2 from A/A− (CP to A-2 from A-1) because of tight ties to the Commonwealth and reliance on GDB loans; it also cited Act 82 of 2002 (annual GDB dividends to the General Fund).

Moody’s, on May 19, downgraded GOs from Baa1 to Baa2 with negative outlook, adding lack of economic growth and a high public payroll. On May 23 it assigned Baa2 to a $520 million Infrastructure Financing Authority (AFI) issue — versus Aaa in September 2000 for $1.1 billion. On May 24 it placed UPR bonds on Watchlist ($440 million in A3; another series Baa1) because more than 70% of UPR revenues depend on the Commonwealth.

William Lockwood (GDB) told CB that both agencies aligning reinforces the urgency of measures; he identified paths to increase liquidity by more than $2.5 billion (AFI/AFM/District/Coliseum refunds >$1 billion; medium-term notes and deposits >$1.5 billion). Outlook/rating downgrade ≠ default. Agency report ≠ judgment. Cousin: 676.

Fonte: Caribbean Business. https://puertoricoherald.com/issues2/2005/vol09n22/CBCmnwlthRting.html