Standard & Poors international ratings agency on Tuesday downgraded Venezuela's credit rating of one of the state bonds from 'CC' to 'D', which is an equivalent to default, as Caracas failed to make coupon payments for its 2020 global bonds.
"Venezuela failed to make $45 million in coupon payments for its global bonds due 2020 within the 30-calendar-day grace period … In line with our criteria for timeliness of payments, we are lowering the issue rating on this bond to 'D' from 'CC," the S&P said in a statement.
"The local currency sovereign credit ratings and senior unsecured issue ratings on Venezuela remain on CreditWatch with negative implications, reflecting our view that the sovereign could again miss a payment on its outstanding debt obligations or advance a distressed debt exchange operation, equivalent to default, within the next three months," the agency said in statement.
Earlier, Fitch Ratings has downgraded Venezuela's long-term issuer default rating to non-investment grade C amid the country’s challenges with bond payments.
Also, the agency said that that Venezuela faces a great risk of default, noting that it was caused by the new US sanctions against Venezuela, which also mired in a deep economic crisis caused by the fall of oil prices.
