Venezuela & Oil Debt: “Default Probable,” Fitch Says

Venezuela’s state-controlled oil company Petroleos de Venezuela (Pdvsa) has to come up with $10 billion for debt payments due this year withless than $2 billion in cash to tap, Fitch Ratings says. What is the likelihood of default, with $12 billion in estimated total reserves? Fitch concludes in a Jan. 31 report that  “Pdvsa’s rating suggests that default is probable.”  Pdvsa owns three Citgo refineries in the United States, which could make things interesting for new Secretary of State Rex Tillerson as he chats up the governments in China, Russia and Venezuela. More…