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Kroll Bond Rating Agency Releases Research Report: "Puerto Rico's Economic Prospects Deepen its Quagmire"Kroll Bond Rating Agency (KBRA) has released a public-finance research report entitled "Puerto Rico's Economic Prospects Deepen its Quagmire" in coordination with its sovereign-ratings unit. The report makes the following key points:
The current dialogue surrounding the solution to Puerto Rico's fiscal crisis focuses on debtor behavior towards creditors, fiscal governance, the prioritization of fiscal expenditures, and also macroeconomic prospects, a key determinant of future debt sustainability. As is the case with many sovereign or public-finnce issuers that restructure their debts, Puerto Rico's structural impediments to growth have contributed to its debt trap. This piece discusses the important role that economic vibrancy plays in post-crisis debt sustainability. It highlights the economic recoveries of sovereign countries that defaulted on debt and subsequently achieved investment grade ratings. KBRA believes that grave challenges lie ahead for Puerto Rico without serious structural reforms necessary to improve its macroeconomic performance. To view the report, please click here.
Follow us on Twitter (News - Alert)! About Kroll Bond Rating Agency KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP). View source version on businesswire.com: http://www.businesswire.com/news/home/20170522005819/en/ |
