[Many thanks to Michael O’Neal for sharing this link via Slavery, Smallholding and Tourism.] You’ve got to take their title and first sentence with a lump of salt but, in this article, Bloomberg reports on the plight of the U.S. Virgin Islands, stating that “just as a federal control board moves to steady the ship in Puerto Rico, another U.S. territory appears in need of a lifeline, too.”
The U.S. Virgin Islands is grappling with some of the same forces that pushed its closest American neighbor into a cascading series of defaults. The island’s bonds were cut to junk by S&P Global Ratings, which is mulling another downgrade over the growing fiscal distress in the region. Meanwhile, Puerto Rico is moving closer to restructuring its $70 billion debt after the U.S. board overseeing its finances issued a framework to pull the commonwealth out of crisis and resumed talks with creditors.
With interest rates edging higher, the Virgin Islands — which has more debt per person than Puerto Rico — is finding it more difficult to borrow. The territory shelved a $219 million bond issue last week amid a spike in yields triggered by the post-election selloff in credit markets. That prompted S&P to place its debt on a negative watch for up to 90 days, warning that the government may find it difficult to meet its debt obligations if it struggles to access credit markets. [. . .]