WASHINGTON: In another blow to the crisis-ridden federal government of Venezuela, the Fitch scores firm stated Friday it has actually cut the country’s foreign debt grade.The unsurprising move came after Caracas required a financial institutions’meeting on Nov 13 to renegotiate a financial obligation load approximated at US$ 150 billion (RM635.4 billion ). Fitch cut the
long-term debt ranking to “C” from “CC” based on the announcement and on “formerly missed out on payments” which “makes a default event highly likely,” the business said in a statement.The company noted that even before the statement Venezuela’s” external liquidity was weak,”and the government faces debt payments of almost US$ 620 million in the final 2 months of the year, followed by US$ 3.34 billion in 2018.Credit-rating agencies have actually been significantly warning of the risk of a Venezuelan financial obligation default. Experts were downhearted about Venezuela’s chances of effectively restructuring its debt.Venezuelan President Nicolas Maduro announced early today he would begin financial obligation negotiations once the federal government had actually made a US$ 1.2 billion payment Friday to service the debt of state oil company PDVSA.Maduro has actually repeatedly blamed the United States for the country’s troubles, stating Washington is aiming to strangle Venezuela with sanctions.Sanctions imposed by President
Donald Trump’s administration in August ban United States sell any new bonds issued by the Venezuelan federal government or PDVSA– a necessary step in any restructuring.