By Jaime Reusche
Moody's Investors Service
NEW YORK -- Following Venezuela's (Caa3 negative) missed interest payments in November which constituted default events, the eventual restructuring could be one of the largest and most complicated sovereign defaults seen by Moody's Investors Service, the rating agency says in a new report.
Moody's expects that the combined restructuring, which would follow missed bond interest payments from national oil company PDVSA and the government, will likely exceed $65.2 billion. That amount would be the fourth-largest default recorded by Moody's, behind Greece in 2012, Argentina in 2001, and Russia in 1998.
Moody's notes that Venezuela's restructuring will be more complicated, however, than other sovereign defaults, with prior cases offering limited visibility into the likely outcome for Venezuela.
Moody's had downgraded Venezuela to Caa3 from Caa1 in January 2015 and placed a negative outlook on the rating in March 2016.