Fitch Says ‘Default Is Probable’ For Venezuela, Lowers U . S .’S Credit Rating

Fitch said in a statement Thursday that a Venezuela default is “probable given the further reduction in financing options” stemming from the latest round of U.S. sanctions.
Venezuela is more likely to default on its debt because its ability to raise money is being hampered by U.S. sanctions, according to ratings agency Fitch.
A CC rating is just two ratings above default.
The Trump administration took aim at Venezuelan President Nicolas Maduro and his government with an August 25 executive order barring trading in certain Venezuelan bonds.
“The outcome of this process combined with the U.S. sanctions will likely deepen the political and policy uncertainties, aggravate the economic crisis, heighten political polarization and increase social unrest,” Fitch said.

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