Frameworks for Evaluating Puerto Rico's Debt Sustainability

Loading...
Thumbnail Image
Degree type
Graduate group
Discipline
Subject
Puerto Rico
framework
debt sustainability analysis
Business
Funder
Grant number
License
Copyright date
Distributor
Related resources
Contributor
Abstract

The Commonwealth of Puerto Rico’s New Fiscal Plan’s debt sustainability analysis is evaluated in conjunction with existing metrics and frameworks for understanding debt sustainability. This includes the IMF’s Debt Sustainability Framework and the rating agencies’ methodologies in rating General Obligation bonds. Different peer comparison groups— sovereign nations, U.S. states, and municipalities— and their relevant statistics are considered and discussed. This paper proposes a peer group of municipalities, specifically of the City of Detroit, to establish a sustainable level of debt for Puerto Rico. Ratio metrics are calculated from the City of Detroit’s Comprehensive Annual Financial Reports to offer a comparative look at Puerto Rico’s debt levels. All metrics demonstrate that Puerto Rico’s current debt obligations must be greatly adjusted to result in a successful restructuring and feasible plan moving forward.

Advisor
David A. Skeel, Jr.
Date of degree
2019-05-01
Date Range for Data Collection (Start Date)
Date Range for Data Collection (End Date)
Digital Object Identifier
Series name and number
Volume number
Issue number
Publisher
Publisher DOI
Journal Issue
Comments
Recommended citation