Credit positives support the rating » Strong political and economic links to the US; benefits from US legal and regulatory systems » Broad legal powers to raise revenues and adjust spending » Constitutional first priority lien on revenues of the commonwealth for general obligation and commonwealth-guaranteed debt » US financial support in the form of transfer payments (social security, nutrition assistance, veterans’ benefits) transportation aid and stimulus funds » FEMA support for natural disasters » Residents not subject to US federal income or gas taxes » Commonwealth has acted to prevent more serious credit deterioration during the extended economic recession – Created new revenues – Pension reform – Maintained positive liquidity position at GDB
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