Venezuelan state-run oil company PDVSA’s default is probable, according to rating’s agency Fitch, as the country struggles with the long-running drop in oil prices—its only source of export revenue.
The drop in the oil prices has deepened Venezuela’s already debilitating, multi-year economic crisis, while compounding debt and severe issues of scarcity spell disaster.
Fitch cited the oil giant’s weak liquidity position and high amortization scheduled for 2017 as the causes of the default problem.
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Update #1: PDVSA Braces for Oil Production Drop as Default Looms Large (Bloomberg)
Update #2: PdVSA Default Ready To 'Make Venezuela Worse Again' (Forbes)
WNU Editor: When your oil company cannot pay contractors for doing the simple stuff .... like cleaning your oil tanker .... Exclusive: Millions of barrels of Venezuelan oil stuck at sea in dirty tankers (Reuters) .... that is when you know that you are in trouble.Correction .... real trouble.
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