Muni Pros See Rough Waters Ahead for Puerto Rico

The commonwealth of Puerto Rico and the Puerto Rico Electric Power Authority may take four to six years to restore liquidity and marketability for their debt, municipal experts told The Bond Buyer.



In written responses to a Bond Buyer survey, six muni pros said the Puerto Rico debtors will regain market confidence only through restructuring, legislative and policy change, budgetary improvements, tax reform, and other cost-cutting and revenue-generating measures.

The Bond Buyer asked: Will the commonwealth and PREPA be able to establish a steady and sustainable path to fiscal relief by the end of July, or will these entities be in worse shape in three months’ time than they are now? When will a turnaround come and what steps will be required? And will there be an opportunity for long-term investment in these entities going forward?

—Christine Albano

Muni Pros See Rough Waters Ahead for Puerto Rico