Fitch rates Venezuela bonds B+

Fitch Ratings said it assigned the new dollar-denominated bond issue maturing in 2014 of the Bolivarian Republic of Venezuela an expected long-term foreign currency rating of B+. The outlook is stable.

Fitch said Venezuela's creditworthiness has improved following the resolution of uncertainty related to the August presidential recall referendum and on higher international liquidity.

As oil prices decline in the future, it will likely be politically difficult to reduce government expenditures commensurately, so the nominal deficit will likely increase unless there is a large devaluation, Fitch said.

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