The international rating agency Fitch Ratings has downgraded Venezuela to “RD” level and confirmed sovereign rating at “CC” as well as Short-Term IDR, both in local and foreign currencies, at “C” level.
In its turn, the state government, at the meeting with creditors on Monday, promised to start paying off the external debts from Tuesday. Although the interested payments started early on Tuesday, Venezuela officials proposed no plan for restructuring the debt and avoiding default.
At the same time, investors are sure that Venezuela can’t pay $60 billion or so on state bonds. That will cause lawsuits sooner or later and worsen the country’s economic outlook, already bad.
In this context, the growth of Venezuela and state oil company PDVSA bonds has significantly lowered down since last week, when they were rising due to the payments expectations.
Remeber, the international rating agency S&P Global Ratings has downgraded Venezuela to SD level on Monday.