Standard & Poor’s downgraded the debt of Puerto Rico to junk status on Tuesday, intensifying a cash squeeze for the commonwealth, whose financial condition is of outsize importance to the rest of the United States because its debt is widely held by individual investors through mutual funds.
S.&P., which lowered its rating to BB+ from BBB-, said it had decided that Puerto Rico was no longer qualified as investment grade because its government was losing its ability to raise cash through the Government Development Bank. It said it did not expect the cash squeeze to ease soon and was keeping all of Puerto Rico’s debt on negative watch, which means more downgrades could follow.
The implications of slipping into junk territory are greater than a one-notch downgrade might suggest. A good portion of Puerto Rico’s debt was issued with promises to make cash payments if it fell below investment grade, and ready cash is precisely what Puerto Rico lacks. S.&P. estimated that the downgrade would initiate cash calls totaling $940 million, including the acceleration of debt service and the posting of additional collateral on interest-rate swaps. Some of those commitments call for Puerto Rico to produce the cash within 30 days.
Blogs I Follow
- Sharp words from a police officer about the lack of anti-terrorist strategy in Burkina Faso
- ‘The Violin Player’ review from Hollywood Reporter
- Panda Bear – Boys Latin
- The Greenville Eight – Integrating American libraries in the South
- Wayne Wiegand’s short article on the struggle of young people like Joseph Jackson to desegregate libraries in the South in 1961
- Report on the vacation classes organized by Cesrud/FAVL Ghana
- Camp de lecture à Sebba
- Camp de lecture à Sebba: séance de lecture individuelle
- Camp de lecture à la bibliothèque de Sebba
- Report on the Vacation Classes being organized by the CESRUD/FAVL Ghana libraries
- Echos des bibliothèques N°22
- Rapport du camp de lecture de Korsimoro, Burkina Faso
- Cesrud/Favl librarian meeting in Sumbrungu, Ghana
- Deux livres photos: Sentiments de Koura Zénimi et de Koura Zama
- Rapport d'activités du mois de juin du bibliothécaire de Bougounam
- Reading camp in Mané village, Burkina Faso 2017
- Le staff de FAVL visite la bibliothèque de Boussouma
- FAVL rencontre le maire de Bourzanga
- Echanges avec le premier adjoint au maire de Boni
- New FAVL photos books published through fastpencil.com for distribution in libraries in Burkina Faso