Moody's lowers PDVSA

Moody's Investors Service said it downgraded PDVSA (Petroleos de Venezuela, SA)'s ratings to Ca from Caa3.

The agency said it lowered the company's baseline credit assessment to Ca from Caa3.

The downgrades reflect the company's Nov. 2 payment default related to the 2017 notes, along with an expectation that the company will default on other debt obligations in the near term given its significant financial stress and the government's stated intention to restructure its debt, Moody's explained.

The outlook remains negative.

Venezuela President Nicolas Maduro has said that the government will initiate a restructuring and refinancing of the country's foreign debt, including that of PDVSA, the agency noted.

The downgrade of PDVSA's rating to Ca from Caa3 reflects a view that expected loss has increased following these events, Moody's said.

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