Fitch Ratings Downgrades Guam Bonds
Downgrade based on assessment that the bond ‘security can no longer be rated distinct from the general operations of the government of Guam’
HAGÅTÑA, Guam (Pacific Daily News, December 25, 2016) – The government of Guam’s outstanding Business Privilege Tax bonds have been downgraded by Fitch Ratings from A- to BB, the governor’s office announced Friday.
The Calvo administration attributed the change to the federal Puerto Rico Oversight, Management and Economic Stability Act, or PROMESA, which was signed into law June 30, 2016. The act was introduced to allow Puerto Rico to restructure its debt and halt litigation in the event of default through the establishment of a federally appointed oversight board. The board also is responsible for oversight and monitoring implementation of sustainable budgets.