March 13, 2018 |
Moody's said it has downgraded Venezuela to C from Caa3 because its eroding payment capacity will likely impose losses on the sovereign's bondholders.
The rating agency said in a report that bondholders' losses could be in excess of 65% due to Venezuela's declining oil production and worsening financial situation.
Moody's also said the government's inability to restructure its debt because of US sanctions hindered its credit rating. The sanctions on Venezuela prevent US investors from accepting
Oil exporting sovereign issuer cut to C from Caa3 because of eroding finances and potential losses to bondholders