Puerto Rico Sales Tax Financing Corporation (COFINA)

Credit Ratings

Credit Rating Reports on COFINA

Go to Commonwealth section to access other credit rating reports affecting COFINA debt     Standard & Poor’s – October 1, 2013

Sales and Use Tax Data Center

Monthly Distribution of Total SUT Collections

Security

COFINA issued Puerto Rico Sales Tax Revenue Bonds to provide funds for the Commonwealth of Puerto Rico to repay certain debt obligations to the GDB and PFC. The bonds, issued under resolutions adopted by COFINA's board of directors will be payable from and secured by a security interest created by the Resolution in a specified portion of the newly created sales tax ("Pledged Sales Tax"). Legislation enacted in 2006 approved for the first time in Puerto Rico a sales and use tax (SUT) of 5.5% for the benefit of the central government and a separate 1.5% for the benefit of municipalities of Puerto Rico. Act 91 also created a Dedicated Sales Tax Fund, to be held and owned by COFINA separate and apart from the central government's General Fund, and provided, among other things, that each fiscal year the first receipts of the Commonwealth's Sales Tax, in the amount specified in the law, be deposited in this special Dedicated Fund and applied to the payment of the Sales Tax Revenue Bonds. On July 1, 2015, the total SUT was increased to 11.5%.

Functions

The Puerto Rico Sales Tax Financing Corporation (by its Spanish acronym, COFINA) is an independent instrumentality of the Commonwealth of Puerto Rico, created by Act No. 91 of May 13, 2006, as amended, for the specific purpose of financing the payment, retirement or defeasance of certain debt obligations of the Commonwealth of Puerto Rico outstanding as of June 30, 2006, which were payable to the GDB and the Puerto Rico Public Finance Corporation (PFC) and were previously payable solely from government budgetary appropriation. COFINA provided a definite and secure repayment mechanism of some $6.8 billion in debt that previously lacked a source of repayment.

Trustees Under the Trust Indenture:

Bank of New York

Financial Statements Audited by:
KPMG LLP

AUDITED FINANCIAL STATEMENTS

June 30, 2014