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Puerto Rico Puts Off Tobacco-Settlement Bond Sale as Rates Rise 

Puerto Rico postponed its offering of $238 million of bonds backed by the U.S. commonwealth's share of payments by cigarette makers to states and local governments, citing ``market volatility.''

The 50-year, tax-exempt bonds were to be issued by the Children's Trust, a nonprofit created by Puerto Rico to sell the rights to revenue from the 1998 master settlement with tobacco companies. A portion of the sale, proceeds of which were to help plug a budget deficit, was to have included high-risk, high- yield securities without a credit rating.

It is the second time in eight weeks that Puerto Rico has put off a bond sale because of higher borrowing costs.

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