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NEW YORK — US ratings agency Standard & Poor's has downgraded foreign and local currency sovereign ratings of Venezuela Friday, due to the country's political risk.
S&P cut the Venezuela ratings from BB- to B+ with a stable outlook. It said that the decision "reflects our recently revised sovereign rating methodology's heavier weight on political risk, which is a credit weakness for Venezuela."
S&P also states that its decision also took into account the the Chavez government's intervention in the investment and growth policies as well as Venezuela's modest fiscal and external positions.
"In our opinion, changing and arbitrary laws, price and exchange controls, and other distorting and unpredictable economic measures have undermined private-sector investment and hurt productivity -- weakening Venezuela's domestic economy," S&P stated.
"Furthermore, the recent developments regarding President Hugo Chavez's health could add to policy uncertainty."
NEW YORK — US ratings agency Standard & Poor's has downgraded foreign and local currency sovereign ratings of Venezuela Friday, due to the country's political risk.
S&P cut the Venezuela ratings from BB- to B+ with a stable outlook. It said that the decision "reflects our recently revised sovereign rating methodology's heavier weight on political risk, which is a credit weakness for Venezuela."
S&P also states that its decision also took into account the the Chavez government's intervention in the investment and growth policies as well as Venezuela's modest fiscal and external positions.
"In our opinion, changing and arbitrary laws, price and exchange controls, and other distorting and unpredictable economic measures have undermined private-sector investment and hurt productivity -- weakening Venezuela's domestic economy," S&P stated.
"Furthermore, the recent developments regarding President Hugo Chavez's health could add to policy uncertainty."
S&P ha degradato il venezuela a B+ con outlook stabile