S&P affirms Venezuela

Standard & Poor's said it affirmed its BB- long- and B short-term sovereign credit ratings on the Bolivarian Republic of Venezuela.

The outlook remains stable.

The rating action comes ahead of the Dec. 2 constitutional referendum that, if passed, is likely to weaken the remaining checks and balances within the Venezuelan political system and hurt the private sector's investment climate, the agency said.

S&P affirmed the ratings because, in its view, Venezuela's robust external and public debt indicators mitigate these negative political developments. High oil prices are generating large current account surpluses that, in turn, have boosted the external assets of the public sector, providing a moderate cushion for possible negative economic developments.

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