S&P Global warned late Tuesday that
Venezuela’s default risk is real in 2017, but it affirmed its non-investment
grade CCC foreign and local-currency sovereign credit rating with a negative
outlook. CCC is considered a speculative category of debt, while CCC minus
would indicate imminent default. Venezuela bonds produced handsome returns last
year as default was averted, and the government shrugged off criticism for a
late payment in November. The latest data show Venezuela has roughly $10.5 billion left in reserves —
mostly gold and some cash – which is enough for
muddle-through year of debt payments, Nomura’s Latin America credit
strategist has said. More…
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