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Two BBC journalists were expelled from Venezuela

Thursday, March 2, 2017

Venezuela's long-term rating affirmed with negative outlook - S&P


Our rating on Venezuela reflects our assessment that the sovereign is vulnerable to default absent unforeseen positive financial and economic developments. Moreover, Venezuela's credit profile reflects its monetary, exchange rate, and fiscal inflexibility and limited external liquidity, compounded by weak institutional and governance effectiveness. We believe that the sovereign's ability to service its debt is under severe strain due to continued economic contraction, high inflation, growing impoverishment, and heightened political tensions. We estimate that the economy will contract at least 2% in 2017 in real terms, following a contraction of around 10% in 2016 and 6.2% in 2015. Per capita GDP growth is estimated to have been negative 4% on average during 2012-2016, a much worse performance than most other energy-based economies. It is likely to remain negative during 2017-2018. More…

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