Puerto Rico Utility May Default on July Payment, Moody’s Says
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Puerto Rico’s Electric Power Authority, the island’s main energy supplier, may fail to pay bondholders about $400 million in principal and interest on July 1, according to Moody’s Investors Service.
The junk-rated utility, called Prepa, has about $678 million of restricted and non-restricted cash, the New York-based rating company estimates. That won’t be enough to cover both the July 1 payment to bondholders and continue a $300 million capital-investment plan, which includes converting facilities to burn natural gas rather than oil, according to a Moody’s report released Monday.