Published: Tue, November 14, 2017
Worldwide | By Isabel Fisher

Venezuela in selective default, says credit ratings agency

Venezuela in selective default, says credit ratings agency

Though it has teetered on the brink for years, Venezuela recently failed to make $200 million in coupon payments on bonds worth $5 billion owed to foreign creditors, according to S&P.


Venezuela hosted a brief meeting with creditors in Caracas on Monday to discuss its total $150 billion foreign debt but the discussions ended without any agreement.

The Venezuelan government described the creditors' meeting as "a resounding success" and said that it would continue to service its debts.

Bondholders had told Reuters on Monday they had not yet received payments on the 2019 and 2024 bonds but remained unconcerned by the delay, which they said was partly due to increased bank vigilance of Venezuelan transactions in the wake of US sanctions.


Beijing and Moscow have emerged as Venezuela's most reliable sources of funding, with China owed $28 billion and Russian Federation $8 billion.

"If any potential restructuring operation is completed, we would lower all of our foreign currency ratings on Venezuela to default and subsequently raise them to the "CCC" or "B" category".


There's still hope for restructuring with only some issues in peril.

Adding to the pressure on Maduro was the European Union's announcement of sanctions.

Maduro is also under fire internationally for marginalizing the opposition, which controls the parliament, and stifling independent media.


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