MORE BORROWING

And because the VI FOUGHT not to be covered by PROMESA if we choose to use it, the VI bond ratings dropped. Now we can't restructure debts to a lower rate and have to borrow at a higher rate than before PROMESA.

If the VI defaults on a bond payment, it will be forced into a plan similar to PROMESA by the Feds.

YEP. But if the investors had the confidence in us, knowing a plan was already in place, we would not have suffered the bond downgrade.

I don't think the bond downgrade is caused by not being part of PROMESA. Correlation is not causation.

The bond downgrade is caused by the VI government's inability to live within its means. Eventually bad choices catch up to you.

However, PROMESA gives current bondholders some hope of recouping investments.