WASHINGTON, Feb 18 (Reuters) - Puerto Rico hopes to only tap the U.S. municipal bond market once this fiscal year, with the Government Development Bank saying on Tuesday it did not have plans to sell bonds beyond its upcoming refinancing package of more than $2 billion.
All three major credit rating agencies cut the island territory’s score to junk earlier this month, raising concerns about Puerto Rico’s liquidity and ability to find buyers for its debt. At the same time, the downgrades kicked a financial hornet’s nest, triggering swap terminations and the acceleration of millions of dollars of debt payments.
The commonwealth is negotiating daily with its counterparties and expects to announce some swap waivers in coming weeks, GDB officials told an investor webcast. It has already received a waiver of $400 million in highway obligations and is at an advanced state of negotiations to renew or waive acceleration provisions in $526 million of the Puerto Rico Electric Power Authority’s working capital lines.