Puerto Rico Utility May Default on January Payment

``The Puerto Rico Electric Power Authority, which supplies most of the commonwealth's electricity, won't make a January interest payment to investors, according to Municipal Market Advisors. The agency, called Prepa, used $41.6 million of reserve funds to help pay bondholders $417.6 million on July 1. With the reserve containing only one year of scheduled interest expense, now depleted by about 10 percent, "we expect the bond trustee is unlikely to make any more distributions to bondholders, reserving cash for likely litigation expenses," Matt Fabian, a managing director at Concord, Massachusetts-based MMA wrote today in a report.''