Credit watch follows GovGuam's limited cash flow - KUAM.com-KUAM News: On Air. Online. On Demand.

Credit watch follows GovGuam's limited cash flow

Posted: Updated:

GovGuam's growing financial woes have caught the attention of international bond ratings agency Standard and Poors.  S&P has placed a credit watch on about $187 million in bond debt. GEDA Administrator Jay Rojas says none of the current bond issues will be impacted, but a ratings downgrade could raise the costs of future bond borrowing.

"The one thing that we're really concerned about is that we look at this new issuance for the port, when we do go out to the market for the Port Authority, we're going to have quite a few answers, quite a few questions that we're going to have to answer," said Rojas.

In a news release, S&P says the credit watch follows  the government's disclosure that its cash flow will be extremely constrained. It went to say that if it doesn't receive evidence that the rating considerations are being addressed, it will likely lower the ratings.

Rojas added, "Last week, we did actually speak to two ratings agencies that did have questions just based on the current environment out there. And as you know, there's been a lot of news about the governor trying to fix this problem and the legislature not really reacting. They take a look at the numbers, they take a look at the current environment, they have a much better overview of what's happening in the market and other municipalities that are out there. What they do is what they do."

The S&P statement was also critical of the government's financial position which it described as weak. It went on to write that "Guam has a history of structural imbalance in its General Fund, including recurring deficits, a very large negative General Fund balance, and massive long-term liabilities."

  • NEWS HEADLINESMore>>

  • Joshua Mesa has September trial for receiving ice in the mail

    Joshua Mesa has September trial for receiving ice in the mail

    Busted with receiving drugs in the mail, Joshua John Untalan Mesa will face a federal jury later this year. This case involves a package containing 50-grams of the drug "ICE." If his name sounds familiar, Mesa was the alleged victim in a high-speed chase More >>
    Busted with receiving drugs in the mail, Joshua John Untalan Mesa will face a federal jury later this year. This case involves a package containing 50-grams of the drug "ICE." If his name sounds familiar, Mesa was the alleged victim in a high-speed chase More >>
  • Two lanes opened to cross Merizo bridges

    Two lanes opened to cross Merizo bridges

    If you've taken the roads down south you might have noticed a less bumpy ride. The roads to cross Bile and Pigua Bridge in Merizo are now open with two lanes. The $3.6 million project took 10 years to finish. Governor Eddie Calvo saying there were challenMore >>
    If you've taken the roads down south you might have noticed a less bumpy ride. The roads to cross Bile and Pigua Bridge in Merizo are now open with two lanes. The $3.6 million project took 10 years to finish. Governor Eddie Calvo saying there were challenMore >>
  • Negligent homicide expunged from couple's records for baby's death

    Negligent homicide expunged from couple's records for baby's death

    It's case closed for Shawn Cruz and Victoria Siaotong. The young couple appeared in court today for the last time. According to their attorneys, both successfully completed the conditions of their deferred plea agreements. This prompted the court to folloMore >>
    It's case closed for Shawn Cruz and Victoria Siaotong. The young couple appeared in court today for the last time. According to their attorneys, both successfully completed the conditions of their deferred plea agreements. This prompted the court to folloMore >>
Powered by Frankly