Venezuela Gets A Downgrade

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News Americas, NEW YORK, NY, Thurs. Aug. 25, 2011: Venezuela’s credit ratings have gotten a downgrade by Standard & Poor’s Ratings Services (S&P).

S&P cut Venezuela’s ratings to ‘B+’ from ‘BB-.’ B+ is four steps below investment grade, according to a statement that said S&P is now giving more weight to political risk in its evaluations. The downgrade comes after Chavez ordered the central bank to repatriate as much as $11 billion of gold reserves as he battles with an undisclosed type of cancer.

Venezuela’s “changing and arbitrary” laws, price controls and other factors have hurt its domestic economy, S&P added. The outlook for the rating is, however, stable.

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