Assured Guaranty Conditionally Supports Revised Puerto Rico GO and PBA Plan Support Agreement
Assured Guaranty Municipal Corp. and Assured Guaranty Corp. (subsidiaries of Assured Guaranty Ltd.) have conditionally supported a revised Plan Support Agreement (PSA) regarding Puerto Rico's financial challenges. This agreement is with the Financial Oversight and Management Board and other creditors, with tacit support from the Commonwealth of Puerto Rico. Assured Guaranty aims for a comprehensive resolution involving various Puerto Rican credits, including Highway and Transportation Authority bonds, ensuring legal rights are respected and expediting the Title III process.
- Conditional support for a revised Plan Support Agreement indicates proactive engagement with Puerto Rico's financial recovery.
- Focus on a comprehensive resolution for various Puerto Rican credits may enhance stability of those investments.
- Risks remain due to uncertainties in achieving a comprehensive solution for Puerto Rico credits.
- Potential delays in the confirmation of the Title III plan of adjustment could impact recovery efforts.
Today, Assured Guaranty Municipal Corp. and Assured Guaranty Corp., each a subsidiary of Assured Guaranty Ltd. (together with its subsidiaries, “Assured Guaranty”) agreed to conditionally support a revised Puerto Rico GO and Public Buildings Authority (PBA) Plan Support Agreement (PSA) with the Financial Oversight and Management Board and other creditors of Puerto Rico and the PBA, as well as with the tacit support of the Commonwealth of Puerto Rico. The bond insurer made the following statement:
Assured Guaranty has consistently supported a consensually negotiated and comprehensive approach to resolving Puerto Rico’s current financial challenges. It conditionally supports this agreement with the express understanding that the government parties will work with Assured Guaranty to make the agreement part of such a comprehensive solution.
Assured Guaranty will continue to work diligently and constructively toward a comprehensive resolution of any remaining issues with the GO and PBA bonds along with other related Puerto Rico credits, such as the Highway and Transportation Authority bonds, Convention Center District Authority bonds, and others, in a manner that respects its legal rights and achieves the ultimate goal of bringing the Title III process to a fair and expeditious conclusion.
Assured Guaranty Ltd. is a publicly traded (NYSE: AGO), Bermuda-based holding company. Through its subsidiaries, Assured Guaranty provides credit enhancement products to the U.S. and international public finance, infrastructure and structured finance markets and also provides asset management services. More information on Assured Guaranty Ltd. and its subsidiaries can be found at AssuredGuaranty.com.
Any forward-looking statements made in this statement reflect Assured Guaranty’s current views with respect to future events and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. These risks and uncertainties include, but are not limited to, those resulting from the failure of the parties to develop a comprehensive solution to all of the Puerto Rico credits to which Assured Guaranty is exposed; the failure of a Title III plan of adjustment based on the terms of the PSA to be confirmed under the Puerto Rico Oversight, Management, and Economic Stability Act; future litigation, and other risks and uncertainties that have not been identified at this time, management's response to these factors, and other risk factors identified in Assured Guaranty’s filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which are made as of February 23, 2021. Assured Guaranty undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
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FAQ
What is the recent action taken by Assured Guaranty regarding Puerto Rico's financial situation?
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