This time it’s Mary O’Grady at the WSJ,
Just Say No to a Puerto Rico Bankruptcy. If the territory walks away from its debt, some states will want the same privilege. (emphasis added),
Can Puerto Rico make good on its debts? The sad truth is that, despite all the heated talk of a solvency crisis, no one knows because there are still no audited financial statements for fiscal year 2014 and thereafter. In a March 1 letter to Senate Finance Committee Chairman Orrin Hatch, Mr. Rosselló, a Democrat, noted that the commonwealth is more than 300 days past the filing deadline for 2014. “It is precisely in a time of crisis that greater transparency, discipline and independent analysis are required in order to properly diagnose the problems and produce sustainable solutions,” Mr. Rosselló wrote.
Failure to produce audited financials demonstrates bad faith, and not for the first time.
So, until these audited financial statements are performed and made public, and unless there’s a firm commitment to fiscal disciple, it’s not worth pursuing.