Business

Moody's Downgrades USVI's Rum Cover-Over Bonds Again

As the territory's troubled financial condition becomes more pronounced, with the government apparently being unable to access the bond market to service its structural deficit of about $110 million, the major U.S. ratings firms -- all of which have downgraded the territory before, some on multiple occasions, are once more setting their sights on the USVI's bonds, with Moody's on Tuesday downgrading the territory's four liens of Matching Fund Revenue Bonds (rum cover-over bonds), issued through the Virgin Islands Public Finance Authority, according to a press release the venerable ratings firm issued Tuesday. Moody's downgrade of the territory's bonds comes on the heels of Fitch's downgrades, which took place last week. Moody's also issued a negative outlook. The downgrades have complicated an already complex and daunting situation for the Mapp administration, whose five-year economic growth plan was formally submitted to the 32nd Legislature thi...