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Dr. Severn's response: Puerto Rico's financial crisis is nothing short of "total collapse," according to Moody's Investor Service.
The federal government "is likely to exhaust resources support the island's public debt and likely will exhaust all authorities to issue new debt" in the next two years, agency said in a report released Thursday.
The island, whose $70 billion in debt is the largest country, already experiencing a debt crisis because of its low tax payment levels. The island has been struggling with a cash shortage and has had to take out a series of other loans to meet payments at its credit card companies.
At the same time, Puerto Rico's economy is expected to contract 1 percent next year after contracting by 8.9 percent in 2016 thanks to high oil prices and depressed commodity prices, according to Moody's.
A debt restructuring could be inevitable, particularly if Puerto Rico defaulted on its obligations for the third time, or if island was unable accutane pbs australia to pay its debt back the tune of nearly $40 billion a year, said Mike Mayo, Moody's vice president of rating strategy.
"The fact that we are talking now about how it could turn into a partial default is certainly major red flag," Mayo said.
On Thursday, the governor of Puerto Rico said the U.S. island does have ability to come an agreement with creditors. "I am very confident that we can reach an agreement and I am hopeful that we can reach a solution to $100 $150 billion," said Ricard