MEXICO CITY (Sputnik) — Standard & Poor's (S&P) rating agency downgraded the credit rating of Venezuela’s state-owned Petroleos de Venezuela (PDVSA) from "CC" to "SD" on distressed exchange, the credit rating agency reported on Wednesday.
"S&P Global Ratings lowered its corporate credit rating on Petroleos de Venezuela S.A. (PDVSA) to 'SD' from 'CC'," the credit rating agency said in a press release.
The press release added, that the agency views the recent exchange of the company's notes due 2017 to the new senior secured notes due 2020 as "distressed exchange".
On Monday, PDVSA announced successful bond swap, which enabled the company to delay the payment of $2,8 billion in debt till 2020.
According to the S&P website, a company may be rated SD or selective default in case it is in default on one or more of its financial obligation, while "CC" is used for vulnerable companies, which S&P expects to default.