Slavin quotes Moody’s Vice President Kathrin Heitman saying “Our Caa2 senior electric system revenue bonds rating, and Caa3 subordinated electric system revenue bonds rating with a negative outlook continue to reflect a high probability of default for the U.S. Virgin Islands Water and Power Authority.” But he quotes Heitman saying they expect WAPA will “likely be able” to make debt service payments on other bonds. Reached for comment Friday, WAPA spokesman Jean Greaux said Moody’s decision to put the utility on a negative watch was “highly anticipated” but emphasized the ratings agencies did not actually change the bond rating.
According to Greaux, the utility is in negotiations with an investor to purchase the bonds in question, which are its 2018 B bond anticipation notes.
“There is an ongoing negotiation,” he said. “The end game is we do not expect a default,” he reiterated.