Fitch Downgrades Venezuela’s Rating to CC, Notes Great Risk of Default | WHAT REALLY HAPPENED


Fitch Downgrades Venezuela’s Rating to CC, Notes Great Risk of Default

"Fitch Ratings has taken the following rating actions on Venezuela's sovereign ratings: long-term foreign and local currency IDRs downgraded to 'CC' from 'CCC'; senior unsecured debt downgraded to ‘CC’ from ‘CCC’; short-term foreign and local currency IDRs affirmed at 'C'; country ceiling downgraded to 'CC' from 'CCC,'" Fitch said in a statement.
The agency pointed out that the threat of default was caused by the new US sanctions against Venezuela.

"Venezuela's downgrade reflect Fitch's view that a default is probable given the further reduction in financing options for the Government of Venezuela following the imposition of additional sanctions on Venezuela by the US government on Aug. 25, 2017," the statement added.

The sanctions ban US citizens from or entities from a number of financial transactions with the Venezuelan government of the country’s PDVSA oil and gas company.

Comments

SHARE THIS ARTICLE WITH YOUR SOCIAL MEDIA