Fitch cuts Venezuela outlook to negative

Fitch Ratings said it revised the outlook on Venezuela's long-term foreign and local currency issuer default ratings to negative from stable.

At the same time, the agency affirmed the issuer default ratings at BB-, the short-term foreign currency rating at B and the country ceiling at BB-, the agency said.

The agency noted that an increasingly unsustainable macroeconomic policy framework, which has resulted in greater vulnerability of external and public sector accounts to a decline in oil prices, an inability to significantly reduce inflation and a widening of the spread between the official and parallel market exchange rates, underpins Fitch's concern with respect to sovereign creditworthiness.

Additionally, Venezuela's external position, which is cushioned by capital controls, has also shown signs of weakening, the agency added.

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