Venezuela Rating Cut By S&P on Concerns About Political Risk
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Venezuela had its credit ratings cut for the first time since 2006 by Standard & Poor’s, which cited concern over the country’s “changing and arbitrary laws” as well as the health of President Hugo Chavez.
S&P cut Venezuela’s credit rating one level to B+, or four steps below investment grade, according to a statement that said the company 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.