NEW YORK (TheStreet) -- Assured Guaranty (AGO) shares are flat at $23.76 on heavy volume as the stock has fluctuated between negative and positive territory in trading today as it continues to suffer the fallout from Puerto Rico announcing that it cannot repay its $72 billion debt.
Puerto Rico Governor Alejandro Garcia Padilla told the New York Times Friday that the country was unable to pay off its debts and as of March 31 Assured Guaranty held about $4.9 billion of par exposure to the U.S. territory, according to Bloomberg.
Yesterday a newly appointed adviser to the territory, who also was the judge that oversaw Detroit's bankruptcy proceedings, said that the island was insolvent and would soon run out of cash, according to Reuters.
"It can no longer pay its debts, it will soon run out of cash to operate, its residents and businesses will suffer," said retired U.S. Bankruptcy Court judge Steven Rhodes.
Jim Cramer, portfolio manager of the Action Alerts PLUS charitable trust had this to say about Puerto Rico's debt crisis, "Everybody had it. Rich people had Puerto Rico. Mutual funds had Puerto Rico [bonds]. A lot of hedge funds had levered up Puerto Rico because it was such a great trade. It turned out to be not so great."
TheStreet Ratings team rates ASSURED GUARANTY LTD as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation: