Moody's may upgrade some Venezuela ratings

Moody's Investors Service said it placed Venezuela's foreign-currency ratings on review for possible upgrade, including the government's B2 rating for foreign-currency debt, the B1 country ceiling for foreign-currency bonds and the B3 country ceiling for foreign-currency deposits.

The outlook remains stable for the government's B1 local-currency debt rating, the country's Baa1 local-currency deposit ceiling and the A3 local-currency bond ceiling.

The agency said the review takes into account the steady improvement in government and external debt indicators during recent years and a good payments track record that may warrant higher credit ratings in spite of the ongoing global financial turmoil.

Venezuela's debt indicators have reported clear and sustained reductions in recent years, Moody's said, but because political concerns have constrained the ratings in the past, the review will consider whether the internal political volatility is less likely to impact debt payments than suggested by the current ratings structure.

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