'Catch 22' situation as Venezuela defaults on debt

Re-rated to 'selective default'

Standard & Poor's has become the first ratings agency to downgrade Venezuela's credit rating to default status, following the country's failure to make two payments on its sovereign debt.

Venezuela failed to make the $200m owed in coupon payments for its global bonds due in 2019 and 2024 within the allotted 30-day time period, according to S&P. Therefore, the ratings agency has downgraded the country's long-term foreign credit rating to ‘selective default' from ‘CC', while also lowering the rating of global bonds due in 2019 and 2024 to ‘D' from ‘CC'. S&P said: "Our CreditWatch negative reflects our opinion that there is a one-in-two chance that Venezuela could default again within the next three months. "We could lower specific issue ratings to default ('D') if Ven...