{"id":1446,"date":"2014-05-12T18:58:57","date_gmt":"2014-05-12T18:58:57","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2014\/05\/puerto_ricobased_doral_financi"},"modified":"2022-03-11T10:18:25","modified_gmt":"2022-03-11T16:18:25","slug":"puerto-ricobased-doral-financi","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/puerto-ricobased-doral-financi\/","title":{"rendered":"Puerto Rico-Based Doral Financial Expected to Default on Over $150M in Muni Bonds"},"content":{"rendered":"

\t\t\t\tMoody’s Investors Service (MCO) and other credit rating agencies are saying that there is a good chance that Doral Financial Corp. (DRL), which is based in Puerto Rico, will default on over $150M muni notes and bonds. Moody’s has downgraded both a note and a bond that was issued by the Puerto Rico Conservation Trust Fund, in which Doral Financial Corp. is the obligor, from Caa3 to C. This is the lowest rating the agency can give before an investment defaults. This prediction comes after regulators determined that receivables from Puerto Rico’s government couldn’t be included in Doral Financial’s Tier 1 capital.<\/p>\n

The receivables were $289M out of Doral’s $679M of Tier 1 capital. The regulators’ decision will compel the bank to up its capital or turn in a contingency plan to liquidate, merge, or sell. The plan has to be submitted to the Federal Deposit Insurance Company (“FDIC”).<\/p>\n

Moody’s also downgraded senior secured bonds from Doral Properties, a Doral Financial subsidiary, from Caa3 to C, while Fitch Ratings lowered Doral Financial’s issuer default rating from CCC to C (the credit agency’s second lowest possible rating). Standard & Poor downgraded the bank to CC, which is its third lowest rating.<\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

Moody’s Investors Service (MCO) and other credit rating agencies are saying that there is a good chance that Doral Financial Corp. (DRL), which is based in Puerto Rico, will default on over $150M muni notes and bonds. Moody’s has downgraded both a note and a bond that was issued by the Puerto Rico Conservation Trust […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3922,4039],"tags":[3430],"class_list":["post-1446","post","type-post","status-publish","format-standard","hentry","category-municipal-bonds","category-puerto-rico-bond-funds","tag-doral-financial"],"yoast_head":"\nPuerto Rico-Based Doral Financial Expected to Default on Over $150M in Muni Bonds — Investor Lawyers Blog — May 12, 2014<\/title>\n<meta name=\"description\" content=\"Moody's Investors Service (MCO) and other credit rating agencies are saying that there is a good chance that Doral Financial Corp. 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