(Bloomberg) -- Venezuela has been declared in default on its dollar bonds due 2025 and 2026 by S&P Global Ratings after the Latin American nation failed to make $237 million in coupon payments within a 30-day grace period.
S&P cut Venezuela’s global bond ratings to D from CC, while affirming the long-term foreign-currency sovereign credit rating at SD. The rating agency had already declared the country in default last week, as did Fitch Ratings, citing missed payments by state oil company Petroleos de Venezuela.
Venezuela, which sits on the world’s largest oil reserves, has seen its economy worsen following a dramatic drop in the price of crude since the middle of 2014. About a dozen institutions holding Venezuelan debt are in the early stages of organizing themselves and meeting with attorneys, according to people with knowledge of the matter. The group includes Pacific Investment Management Co., T. Rowe Price Group Inc. and Amundi Pioneer, said the people, who asked not to be identified because talks are private.