Venezuela Declared in Default by S&P After Missing Bond Payments

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Venezuela, one of the world’s riskiest credits, was declared in default by S&P Global Ratings after missing two interest payments on its debt, Bloomberg News reported. The nation, home to the world’s largest oil reserves, owed investors about $200 million and failed to make those payments by the end of a 30-day grace period that expired over the weekend, S&P said in a statement in which it lowered the country’s rating to SD. Plagued with payment delays and running low on cash, it’s the first time in recent years the government has exceeded the buffer period on its bonds. State oil producer Petroleos de Venezuela SA had already been said to default by Fitch Ratings and Moody’s Investors Service. 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. While no solid proposals came out of the event, government officials insisted they plan to continue to service obligations. Read more.