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Puerto Rico Bracing For Credit Rating Change


April 4, 2002
Copyright © 2002 CARIBBEAN BUSINESS. All Rights Reserved.

Credit rating agency Standard & Poor’s (S&P) is expected to revise the Commonwealth’s credit rating, following its latest meeting with members of Gov. Sila Calderon’s economic team.

Government Development Bank Executive Vice President Jose Pagan told CARIBBEAN BUSINESS that with the nine-month mark of Puerto Rico’s "CreditWatch" status fast approaching, the Commonwealth’s credit rating is now due to either be returned to a stable outlook–or downgraded.

Since July 2001, the Commonwealth has been on an S&P CreditWatch, a status that typically precedes a change in credit rating by six to nine months.

Pagan said the decision by S&P could be made as early as this week. Members of Gov. Calderon’s economic team met with S&P on March 22 at S&P’s request. "We weren’t in a rush for the meeting–but they were–with the nine-month deadline approaching," said Pagan.

Members of Gov. Calderon’s economic team–including Government Development Bank President Juan Agosto-Alicea and Treasury Secretary Juan Flores-Galarza–have expressed confidence that the Commonwealth’s latest fiscal moves will be positively evaluated by S&P.

However, in recent months S&P has downgraded the credit ratings of several other U.S. jurisdictions that were also previously on "CreditWatch" and that also faced budget shortfalls on scales similar to Puerto Rico’s.

This Caribbean Business article appears courtesy of Casiano Communications.
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