Guam Downplays Puerto Rico Risk Amid Return to Muni Market
- Territory sells $237.9 million of Section 30 revenue bonds
- Guam debt has returned 3.4 percent this year, S&P index shows
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Guam, the U.S. territory in the Pacific more than 9,000 miles (14,480 kilometers) from Puerto Rico, is giving municipal bond investors stung by the Caribbean island’s record default a reason to pause.
The 30-mile-long tropical island sold $237.9 million of limited-obligation bonds Thursday to refinance older, higher-yielding debt and to help fund improvements at the territory’s public hospital. The securities, which are backed by revenue derived from federal income taxes collected on the island, carry an investment grade rating of BBB+ from S&P Global Ratings, five steps above the junk rating of BB- on Guam’s general-obligations.