S&P declares Venezuela in selective default after missed payments

World ON BRINK: Venezuela defaults on 60 BILLION debt

World ON BRINK: Venezuela defaults on 60 BILLION debt

S&P cut its long-term foreign currency issuer debt rating from CC to "selective default", keeping that on its short and long-term local currency debt at C and CCC-, respectively, albeit on Credit Watch negative.

Separately, the Luxembourg Stock Exchange said it was halting trading of Venezuela's 2019 and 2024 bonds due to an "event of default".

The unpaid obligations total $420 million, the agency said.

Venezuela has been in a recession since Maduro succeeded the late president Hugo Chavez in 2013.

"In addition, in our opinion, U.S. sanctions on Venezuela and government members will most likely result in a long and hard negotiation with bondholders", it said.

Instead, the head of the Venezuelan commission, Vice-President Tareck El Aissami, read a statement blaming sanctions imposed by the United States for Venezuela's difficulties in making the payments. And many creditors also can't negotiate with El Aissami: He, too, is sanctioned by the US Treasury, which accuses him of drug trafficking.

There's still hope for restructuring with only some issues in peril.

A committee of the International Swaps and Derivatives Association (ISDA) is weighing whether holders of PDVSA debt with default insurance - credit default swaps - can collect payment.

The agency said it acted after a 30-day grace period had passed on payments on two bonds.

It ended up deciding to again postpone a decision until Tuesday.

Venezuelan President Nicolas Maduro has indicated that his country was negotiating with its two allies.

But his options are very limited.

Global credit ratings agency Standard & Poor's has declared Venezuela to be in "selective default".

This is unedited, unformatted feed from the Press Trust of India wire.

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