Fitch rates Venezuela bonds BB-

Fitch Ratings said it has assigned expected BB- ratings to the issues of Venezuelan government bonds maturing Feb. 26, 2016 and Dec. 9, 2020.

The outlook is stable.

The 2016 bond has a 5.75% fixed coupon and the 2020 bond has a 6% fixed coupon. The bonds are being marketed in Venezuela to be purchased in local currency at the official exchange rate but under New York law, with all coupon and principal payments in dollars, Fitch said.

Venezuela's sovereign ratings are supported by superior international liquidity and low external financing requirements relative to similarly rated sovereigns, Fitch said.

Fitch said the ratings are constrained by vulnerability to external shocks because of oil dependency, diminished capacity of the private sector to absorb shocks because of heavy government intervention in the productive sector; recent spending increases that reduce fiscal flexibility and concerns about the rule of law and potential political instability.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.