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20:35, 09-Dec-2017
Venezuela in new defaults on two bonds: ratings agency
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The financial challenge facing Venezuela was further exposed on Friday when ratings agency S&P said the country had defaulted on two bonds.
The agency said OPEC-member Caracas failed to make a 183 million US dollars coupon payment within a 30-day grace period on global bonds due in 2023 and 2028.
The grace period expired Friday.
"In line with our criteria for timeliness of payments, we are lowering the issue ratings on these bonds to D from CC," the agency said.
Global ratings agencies had declared Venezuela and state-owned oil company PDVSA to be in "selective default" due to late payments on multiple bond issues.
PDVSA is Venezuela's primary source of income.
Although it sits atop the world's biggest oil reserves, Venezuela is struggling under an estimated debt burden of 150 billion US dollars.
S&P on Thursday said the worsening financial and social crisis in the country had put the credit of Venezuela's US-based oil company Citgo at risk.
The ratings agency put the ratings of Citgo Holdings and Citgo Petroleum on "CreditWatch with developing implications" – indicating a credit move is likely within 90 days.
Source(s): AFP