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S&P lowers Venezuela's sovereign ratings

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IMAGE: Standard & Poor's »


Standard & Poor's (S&P) lowered Venezuela's long-term foreign and local currency sovereign credit ratings to 'CCC+' from 'B-', with a negative outlook.

S&P also lowered the short-term foreign and local currency ratings to 'C' from 'B.'

"Economic recession, high inflation and growing external liquidity pressures will continue to erode the government's capacity to pay external obligations over the next two years," said S&P in a release.

The Venezuelan government, moreover, is seen as unlikely to take corrective measures, S&P added.

The downgrade also reflects Venezuela's increasing reliance on favorable oil prices to meet financial obligations and its higher vulnerability to nonpayment.

The negative outlook reflects that worsening economic distortions and political polarization could exacerbate external liquidity and governability, increasing the risk of sovereign default.

Article Credit: Bnamericas

Updated 5 Years ago

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Tags:     Standard & Poor's     Venezuela     CCC