Venezuela’s Expropriated Steel Company “Defaults”
Downgrades to Sidururgica del Turbio S.A. (Sidetur) from Fitch Ratings have prompted the expropriated steel company to drop its participation in the process. Fitch downgraded Sidetur to “D” on its foreign currency long-term Issuer Default Rating (IDR) and a variety of other measures.
Earlier this year Fitch had set the same ratings at “C,” and there was a “Negative Watch” put on its local currency long-term IDR. They cited concerns over Sidetur’s assets as “under the control of the government of Venezuela.”
Siderurgica Venezolana Sivensa SA (Sivensa) acquired Sidetur in 1979, and on February 8, 2011, the Chávez Administration declared its assets property of the state.