Puerto Rico May Skirt New Debt Sales to Avoid High Costs

Puerto Rico debt is poised to climb after the commonwealth’s Government Development Bank said the island may skip borrowing before June because of adequate funds.

Puerto Rico and its agencies still plan to sell as much as $1.2 billion of debt by Dec. 31 to balance budgets, although the territory has the flexibility to postpone issuance, the bank said. Officials released the information yesterday in a webcast investor briefing on the finances of the commonwealth, whose general-obligation bonds are rated one level above junk.