|
|
|
|
Search: 
Latin American Herald Tribune
Venezuela Overview
Venezuelan Embassies & Consulates Around The World
Sites/Blogs about Venezuela
Venezuelan Newspapers
Facts about Venezuela
Venezuela Tourism
Embassies in Caracas

Colombia Overview
Colombian Embassies & Consulates Around the World
Government Links
Embassies in Bogota
Media
Sites/Blogs about Colombia
Educational Institutions

Stocks

Commodities
Crude Oil
US Gasoline Prices
Natural Gas
Gold
Silver
Copper

Euro
UK Pound
Australia Dollar
Canada Dollar
Brazil Real
Mexico Peso
India Rupee

Antigua & Barbuda
Aruba
Barbados
Cayman Islands
Cuba
Curacao
Dominica

Grenada
Haiti
Jamaica
Saint Kitts and Nevis
Saint Lucia
Saint Vincent and the Grenadines

Belize
Costa Rica
El Salvador
Honduras
Nicaragua
Panama

Bahamas
Bermuda
Mexico

Argentina
Brazil
Chile
Guyana
Paraguay
Peru
Uruguay

What's New at LAHT?
Follow Us On Facebook
Follow Us On Twitter
Most Viewed on the Web
Popular on Twitter
Receive Our Daily Headlines


  HOME | Venezuela (Click here for more Venezuela news)

Venezuela's PDVSA Put on NEGATIVE WATCH FOR DEFAULT By S&P
"Given PDVSA's current sanctions and its already pressured liquidity position, we are uncertain about the company's ability to pay its upcoming debt maturities at the end of the month and beginning of November," says S&P. "We have placed our ratings on PDVSA, including our 'CCC-' corporate credit rating, on CreditWatch with negative implications."

By Marcela Duenas
& Fabiola Ortiz
Standard & Poors


MEXICO CITY -- S&P Global Ratings placed its ratings on Petroleos de Venezuela S.A. (PDVSA) on CreditWatch with negative implications, including its 'CCC-' corporate credit ratings.

On August 25, 2017, the U.S government banned the trade in any new bonds or stocks of the Venezuelan government and PDVSA, as well as dividend payments or other distributions of profits to the Government of Venezuela from any entity owned or controlled, directly or indirectly, by them. Banks also cannot engage in new lending with the government or PDVSA. In September, the Venezuelan government had difficulty making a coupon payment on their sovereign bonds, driven by these sanctions. The coupon was paid a week after it was scheduled.

Given PDVSA's current sanctions and its already pressured liquidity position, we are uncertain about the company's ability to pay its upcoming debt maturities at the end of the month and beginning of November.

The CreditWatch placement reflects the uncertainty about the company's ability to pay its upcoming debt maturity on its 2020 senior unsecured notes scheduled to be covered on Oct. 27, 2017 for about $1.0 billion and the maturity of its 2017 senior unsecured notes scheduled to be covered on Nov. 2, 2017 for about $1.2 billion, given PDVSA's current sanctions and its already pressured liquidity position.

The CreditWatch negative listing means the ratings could be lowered or affirmed in the next week. We expect to resolve the CreditWatch listing once the company either fails to pay its upcoming debt maturities on the scheduled date ,or if it pays them down. If the company is unable to pay its maturities, the corporate rating will be lowered to 'SD', the rating on the 2017 and 2020 notes will be lowered to 'D', and the remaining current outstanding debt will be affirmed at 'CCC-'. If the company announces a general default all of the ratings will be lowered to 'D'.


 

Enter your email address to subscribe to free headlines (and great cartoons so every email has a happy ending!) from the Latin American Herald Tribune:

 

Copyright Latin American Herald Tribune - 2005-2015 © All rights reserved