Baku. 31 August. REPORT.AZ/ Fitch international rating agency downgraded long-term foreign and local currency IDRs to 'CC' from 'CCC.
Report informs citing the TASS, the agency doesn't not rule out Venezuela's default, saying the default is "probable".
Fitch affirmed Venezuela's short-term foreign and local currency IDRs at 'C'. Venezuela's downgrade reflect Fitch's view that a default is probable given the further reduction in financing options for the Government of Venezuela following the imposition of additional sanctions on Venezuela by the U.S. government on Aug. 25, 2017. The expected reduction in the international reserve position in the context of sanctions will severely test the government's capacity and willingness to continue with timely debt service.
Notably, currently, US-dollar official exchange rate makes 9,98 bolivars in Venezuela, while 17,663 in the black market. That is, exchange rate in the black market exceeds the rate by 1,770-fold.