Venezuela’s Expropriated Steel-Company Sidetur Defaults says Fitch

[Bacchus4.0]

http://www.laht.com/article.asp?ArticleId=885187&CategoryId=10717


Venezuela’s Expropriated Steel-Company Sidetur Defaults says Fitch


CHICAGO – Fitch Ratings has taken the following ratings actions on Sidururgica del Turbio S.A. (Sidetur) and Sidetur Finance B.V.:

Sidetur S.A.


Foreign currency long-term Issuer Default Rating (IDR) downgraded to ‘D’ from ‘C’;


Local currency long-term IDR downgraded to ‘D’ from ‘C’;


National scale rating downgraded to ‘D(ven) from ‘C(ven)’;


National short-term rating downgraded to ‘D(ven)’ from ‘C(ven)’.

[Socialistlemur]

1. Sounds reasonable

All Venezuelan bond issues are now threatened by the Chinese senior debt holding. The Venezuelans are trying to negotiate a $5 billion loan from china to plug their cash flow gap. This will take the loans in the Fondo Chino to $45 billion. And apparently the guy doing the egotiating is young Arreaza, whose entry into power was via marriage to Chavez's daughter. I think the Chinese are a bit sick of taking heavy oil mortgages ad will ask for land. Venezuela may be about to get subtly colonized?