F&D Reports / Creditntell / FDARMS Releases White Paper on the Puerto Rico Debt Crisis

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Report Documents the Island’s Debt Burden, Economic Situation, and the Effects on Business

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A comprehensive look at how San Juan’s next moves will impact the local economy as well as an evaluation of the problems local businesses will have to address and overcome

Industry-leading credit consulting firm Information Clearinghouse, Inc. (ICI), through its F&D Reports and Creditntell divisions and sister company FDARMS, has released a White Paper examining Puerto Rico’s adverse financial condition and economic environment as well as how recent reform initiatives are impacting certain business sectors.

Following years of borrowing to bolster its plunging economy, coupled with a nearly decade-long recession, Puerto Rico’s debt has compounded. While the financial markets have largely ignored the recent turmoil there, as municipal investors have long favored the island’s high yield and tax-exempt debt, the situation has reached critical mass. Earlier this month, Puerto Rico’s governor warned that the U.S. territory is headed into a “death spiral” and declared its $72.00 billion public debt “unpayable.” Complicating the matter is that as a commonwealth Puerto Rico is lacking the bankruptcy protections normally afforded to states under U.S. law, and efforts to extend protection have so far stalled.

The White Paper provides an analysis of Puerto Rico’s financial situation, including its deficits, liquidity, largest creditors, and banking operations; its recessionary economic environment, including gross national product movement, unemployment, and outmigration / population; and government reforms, including new tax codes and small-business support. Most notably, the report documents the impacts to the manufacturing, tourism, retail, and food and beverage sectors, with a list of select Puerto Rico-based companies and their ARMS payment scoring and six-month trending.

To receive a copy of this report, please contact Ramona Dracea / 800-789-0123 ext.124.

Commenting on the White Paper, CEO Lawrence Sarf stated, “With the whole world fixated on Greece’s return to the financial crisis forefront, it seems as though Puerto Rico’s issues went under the radar — despite the fact that U.S. creditors of businesses operating in the Commonwealth stand to be just as affected by what happens in the Caribbean as in the Mediterranean. With that in mind, our team of analysts put together this comprehensive look at how San Juan’s next moves will impact the local economy as well as an evaluation of the problems local businesses will have to address and overcome.”

Information Clearinghouse, Inc. (publisher of F&D Reports, Creditntell, & ARMS) is a leading retail credit consulting firm specializing in the analysis of public and private companies in numerous retail segments. The focus of its analysis is to deliver the key intelligence today’s busy credit executive needs to make a highly informed decision without sifting through pages of non-essential data. To learn more, visit our websites at http://www.fdreports.com, http://www.creditntell.com, http://www.fdarms.com.

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Ramona Dracea
F&D Reports
+1 (800) 789-0123 Ext: 124
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