NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) has released a public finance research report entitled “In Bankruptcy Municipal Bondholders are Behind the Eight Ball”
As the restructuring process in Puerto Rico unfolds, there are a number of developments that KBRA believes warrant comment. These issues have implications regarding Puerto Rico specifically and may have ramifications for the wider municipal market as well.
Municipal creditors are increasingly being treated differently than they have been in the past. In recent high-profile municipal bankruptcies and debt restructurings such as those of Detroit, and in the developing process thus far in Puerto Rico, the framework has taken on the character of corporate bankruptcies. Municipal bondholders are particularly vulnerable in this more adversarial, zero-sum environment and it is among the reasons they are behind the eight ball.
To read the report, please click on here.
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About Kroll Bond Rating Agency
KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).