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Ambac, FGIC Covering Puerto Rico Bond Payments After Default

  • Island infrastructure agency skipping $35.9 million payment
  • Insurers say they're standing by pledges to pay under default
Updated on

Insurance companies that guarantee a Puerto Rico agency’s bonds are covering some payments that the island’s government defaulted on this month.

Ambac Financial Group Inc. paid $10.3 million in interest that was due Monday on Puerto Rico Infrastructure Financing Authority debt, Abbe Goldstein, a spokeswoman for the bond insurer, said in an e-mail Tuesday. Financial Guaranty Insurance Co. will pay 22 percent of $6.4 million in interest it insures, Edward Turi, a spokesman for FGIC, said in a phone call Tuesday. Standard & Poor’s cut Prifa, as the authority is known, to D because of the payment default.