Assured Guaranty achieves agreement on Puerto Rico clawback credits
Assured Guaranty Municipal Corp (AGM) and Assured Guaranty Corp, subsidiaries of financial guaranty insurer Assured Guaranty, have achieved an agreement in principle with the financial oversight and management board for Puerto Rico on a framework to settle their insured exposure to Puerto Rico Highway and Transportation Authority and other Puerto Rico clawback credits (subject to definitive documentation).
They have said that they continue to support the revised Puerto Rico General Obligation (GO) and Public Buildings Authority (PBA) Plan Support Agreement (GO and PBA PSA).
Assured Guaranty said in a statement: “Assured Guaranty has consistently supported a consensually negotiated and comprehensive approach to resolving Puerto Rico’s current financial challenges. It supports the GO and PBA PSA as part of a comprehensive solution that also addresses related Puerto Rico credits, including the Highway and Transportation Authority bonds and Convention Center District Authority bonds, in a manner that respects Assured Guaranty’s legal rights and achieves the ultimate goal of bringing the Title III process to a fair and expeditious conclusion.”
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