Debt default by Venezuela seen inevitable
Venezuela slipped inexorably toward debt default, with analysts it was all but inevitable for the sinking oil-producing state. Major credit rating agencies Fitch, Moody’s and Standard and Poor’s have all downgraded Venezuela’s standing. Default would immediately cut Venezuela off from international financial markets, removing its capacity to borrow. Greatly complicating its situation, Washington has banned it from any new debt transactions in the US market. For a country with the world’s largest oil reserves, estimated at nearly 300 billion barrels worth more than $15 trillion—such debt should be bearable.