Venezuela's PDVSA calls ratings agencies 'professional speculators'
- Stocks dip as earnings pour in, consumer discretionary lags
- UPDATE: Alphabet (GOOG) Tops Q3 EPS Views; Revs Strong
- Twitter (TWTR) Tops Q3 EPS by 4c; Announces Restructuring, Workforce Reduction
- Cirrus Logic, Inc. (CRUS) Q2 Results and Guidance Beat Estimates
- Amazon.com (AMZN) Misses Q3 EPS by 26c, Offers Q4 Guidance
The logo of the Venezuelan state oil company PDVSA is seen at a gas station in Caracas, Venezuela, September 14, 2016. REUTERS/Henry Romero
Find out which companies are about to raise their dividend well before the news hits the Street with StreetInsider.com's Dividend Insider Elite. Sign-up for a FREE trial here.
CARACAS (Reuters) - The president of Venezuelan state oil company PDVSA on Tuesday slammed ratings agencies as "professional speculators" who were contributing to a negative reception of a $7.1 billion bond swap proposal meant to improve the company's finances.
Standard & Poor's on Monday said PDVSA's swap plan was "tantamount to default" if carried out, while Fitch Ratings said PDVSA's 2020 bond to be issued as part of the swap had a "real possibility of default."
Moody's said that "if executed as planned, (the exchange) would be a credit positive event ... reducing the risk of an immediate payment default."
PDVSA President Eulogio Del Pino slammed the ratings agencies on Union Radio, a Caracas-based network.
"Speculators are trying to generate a climate of tension so that (bondholders) will get rid of their bonds at a lower price," said Del Pino. "These ratings agencies are always playing this game, they always have, they're professional speculators."
S&P and Fitch did not immediately respond to emails seeking comment.
PDVSA is offering investors a new 2020 bond in exchange for the 2017N
Wall Street analysts have expressed concern that the operation is not sufficiently attractive to convince bondholders to join a swap operation.
Del Pino said the plan had been subjected to a "smear campaign"
Socialist-led Venezuela frequently accuses Wall Street and businesses of seeking to sabotage its leftist administration.
"What we're seeing is a political war against our country, against our operation, trying to grind our operation into the ground," said Del Pino, urging bondholders to "carefully evaluate what we are offering you."
PDVSA says it will continue to make payments on outstanding bonds even if investors turn down the swap offer.
Despite market concerns earlier this year that PDVSA could default, investors broadly believe that PDVSA and Venezuela will continue servicing debt to avoid being cut off from the international financial system.
President Nicolas Maduro dismisses default talk as a campaign by adversaries seeking to weaken his government.
(Reporting by Eyanir Chinea, writing by Brian Ellsworth; Editing by Cynthia Osterman)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Police begin removing protesters from Dakota pipeline encampment
- In breathless U.S. election, Twitter generates buzz not cash
- Amazon forecast for holiday season disappoints as investment rises
Create E-mail Alert Related CategoriesReuters
Related EntitiesFitch Ratings
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!