S&P lowers Venezuela to B-

Standard & Poor's said it lowered its long-term foreign- and local-currency sovereign credit ratings on the Bolivarian Republic of Venezuela to B- from B.

The outlook on the long-term ratings is negative.

At the same time, the agency affirmed its B short-term foreign- and local-currency sovereign credit ratings on Venezuela. The sovereign's transfer & convertibility assessment was lowered to B- from B.

S&P said the downgrade is based on the growing radicalization of economic policy over the last two months in the context of a sustained decline in international reserves and the continued high levels of political polarization. In the run-up to the Dec. 8 municipal elections, the government of President Nicolas Maduro was able to pass in congress on Nov. 19 a law that delegated special powers to the president, allowing the executive to govern by decree over a wide variety of economic matters for a period of one year.

S&P said it expects Maduro to rely extensively on these special powers to increase the public sector's participation in the economy.

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