|
|
|
|
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 State Oil Co PDVSA Gets Another Default from S&P
"Venezuela-based oil and gas company PDVSA failed to make its interest payment on its 2017 senior unsecured notes within the 30-calendar-day grace period, which expired on Dec. 2, 2017," notes S&P. "In line with our criteria for timeliness of payments, we're lowering the issue ratings on the company's bonds to 'D' from 'CC'."

By Marcela Duenas
& Fabiola Ortiz
Standard and Poor's


MEXICO CITY -- S&P Global Ratings lowered its issue-level ratings on Petroleos de Venezuela S.A.'s (PDVSA's) senior unsecured notes due 2017 to 'D' from 'CC'.

PDVSA hasn't been able to meet the coupon payment on its 2017 notes within the 30-calendar-day grace period (or the bondholders hadn't received the funds by that date), constituting an event of default under our methodology. (please see "Methodology: Timeliness of Payments: Grace Periods, Guarantees, And Use of 'D' And 'SD' Ratings," published Oct. 24, 2013). However, it's our understanding that the company has paid the principal amount.


Since October 2017, PDVSA has been using its stated 30-day interest payment grace period in an effort to garner enough dollars to meet its debt maturities. Given current sanctions on PDVSA and its already pressured liquidity position, we're uncertain about the company's ability to pay the rest of its debt maturities within the grace period.

Additionally, the president of Venezuela, Nicolas Maduro, announced the formation of a government commission to restructure the sovereign's and PDVSA's external debt obligations. Given the highly constrained external liquidity situation for the sovereign and domestic entities, we would consider any restructuring of PDVSA's debt to be a distressed debt exchange and equivalent to default (please see "Rating Implications Of Exchange Offers And Similar Restructurings, Update," published May 12, 2009).




 

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