The Takeaway:

Progress is being made to restructure Puerto Rico's (PR) debts. A deal with COFINA creditors has been reached, progress is being made on Government Development Bank (GDB) and PR Aqueduct and Sewer Authority (PRASA) debts, and some general obligation (GO) and PR Electric Power Authority (PREPA) creditors have been negotiating with the Financial Oversight and Management Board (FOMB) and PR officials. This progress is positive; however, no deals are complete or court approved and there are risks that could disrupt the process. While the progress is positive, a conclusion to PR 's debt restructuring is still not likely before 2020 and likely 2021. These are some of the takeaways from our recent conference call with John Mudd, a PR lawyer. We consider the progress positive for Ambac Financial (AMBC), Assured Guaranty (AGO), and MBIA, Inc. (MBI) as it reduces uncertainty regarding insured exposures and expected loss payments.