The 'A' rating on the Commonwealth of Puerto Rico's GO bonds reflects: * Sustained moderate economic growth; * Adequate financial performance that has improved over the past three years; * Low wealth indicators; and * High, but manageable, debt levels. These factors are offset by strong capital needs and a large unfunded pension liability. Economic indicators show positive signs. Led by construction; trade; and services sectors, which comprise over 50% of the employment base, the economy continues to broaden and create job opportunities. The GNP is growing annually in the 2.5%-3.0% range. Unemployment figures are at near record lows, but still high, at about 12%-13%; and total employment growth has averaged nearly 4% over the past two years. Section 936...
Companies mentioned in this report are:
- Puerto Rico
Action: New Rating
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