MOODY'S ASSIGNS Baa1 RATING ON UP TO $1 BILLION OF PUERTO RICO GOVERNMENT DEVELOPMENT BANK SENIOR NOTES, 2011 SERIES G (TAXABLE) AND 2011 SERIES H

Posted on: December 9, 2011, 6:01 pm

NEW YORK, December 09, 2011 --Moody's Investors Service has assigned a rating of Baa1 to the Government Development Bank for Puerto Rico's (GDB) planned sale of unsecured senior notes. The outlook is negative, reflecting the negative outlook on the Commonwealth of Puerto Rico. GDB will use the proceeds from the sale of the 2011 Series G notes, to be sold in the U.S. market, to redeem the outstanding 2011 Series F notes, which were issued on an interim basis prior to the release of GDB's fiscal 2011 financial statements. The remainder of the proceeds of the Series G notes, as well as the Series H notes, which will be sold in the local market later in December, will be used to refund outstanding local market bonds for debt service savings and for general corporate purposes, including increasing its investment portfolio and making loans to and purchasing obligations of the commonwealth. The par amount has not yet been determined and is preliminary and subject to change. Demand for the current issue will determine the size of the refunding; our rating applies on a par amount of up to $1 billion on the combined issuance. The notes are expected to be three to twelve years in maturity. The notes rank on parity with other senior debt of the GDB currently outstanding and issued in the future--including long-term, medium-term and commercial paper notes--and are payable from any available funds of the bank including underlying loan repayments, investment income, and sale of refunding notes. The GDB has approximately $5.8 billion in senior notes outstanding...

Login to your account

Email address:
Password:

Become a member

Register for a MunicipalBonds.com account to get access to a whole new way of tracking, analyzing, and researching bonds.

   Keep track of bonds you own
   Get ratings from S&P for all rated municipal bonds
   View issue history reports
   Access our price archives
...And much more

Register now »

We are providing certain data supplied to us by the Municipal Securities Rulemaking Board ("the Service") without warranties or representations and on an "as-is" basis. WE HEREBY DISCLAIM ALL REPRESENTATIONS AND WARRANTIES (EXPRESS OR IMPLIED), BUT NOT LIMITED TO, WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE REGARDING THE SERVICE. You shall bear all risk, related costs and liability and be responsible for your use of the Service.

The transaction data provided through the Real-Time Transaction Subscription Service represents municipal securities transaction data made available by brokers, dealers, and municipal securities dealers to the MSRB and related information. Such transaction data and/or related information may not exist for all municipal securities and may not be required to be submitted to the MSRB for certain types of municipal securities transactions. The MSRB does not review transaction data submitted by submitters for accuracy, completeness or any other purpose, and does not warrant or guarantee the accuracy of any such transaction data and/or related information.

The MSRB, its officers, directors, employees, agents, consultants, and licensors shall not be liable or responsible to you or anyone else for any losses, injuries, damages, costs, expenses or claims caused by, arising out of or relating to the following: (a) acts, omissions, occurrences or contingencies beyond their control; (b) service interruptions or performance failures, such as those that result from the use of telecommunications facilities that are outside of their control, including the Internet: (c) negligence, gross negligence or willful misconduct in procuring, compiling, interpreting, editing, writing, reporting or delivering any of the content and material; (d) lost, stolen, late, corrupted, misdirected, failed, incomplete or delayed transmissions by anyone using the Service, including, but not limited to, any technical malfunctions, human error, computer viruses, lost data transmissions, omissions, interruptions, deletions, defects, hyperlink failures or line failures of any telephone network, computer equipment, software or any combination thereof; (e) damage to your computer systems, equipment, software, data or other tangible or intangible property resulting from or sustained in connection with your use of the Service; and/or (f) any disruption of business, lost sales or lost profits or any punitive, exemplary, indirect, special, incidental, or consequential damages associated or in connection with, resulting from or arising out of any use of the Service or the content and material in the Service.

The MSRB and its officers, directors, employees, agents, consultants, and licensors shall have no liability in tort, contract, or otherwise (and as permitted by law, product liability) to you or anyone else for any reason associated or in connection with, resulting from or arising out of your use of the Service. The MSRB, its officers, directors, employees, agents, consultants, and licensors make, and have made, no recommendations regarding any of the securities or other investment vehicles, referred to or described in the Service.

The Service is reproduced by permission of the MSRB under a non-exclusive license. The MSRB accepts no responsibility for the accuracy of the reproduction of the Service or that Service is current.