Venezuela declared in default by S&P - BBG

Bloomberg reported on Tuesday that Venezuela was declared in default by S&P Global Ratings after missing two interest payments on its debt.

Key Points:

“Venezuela has struggled with payment delays in recent months as U.S. sanctions imposed against the nation created hurdles in the payment chain. With reserves near a 15-year low, officials have called for a renegotiation of all the country’s global debt, and bondholders were invited to Caracas on Monday for a meeting with government officials.” 

Moody’s has a negative outlook on its rating, “reflecting our view that the sovereign could again miss a payment on its outstanding debt obligations or advance a distressed-debt exchange operation, equivalent to default, within the next three months,” the company said.