Dec 17 Moody's Investors Service downgraded
Venezuela's credit rating on Monday and warned it could cut them
again given what it saw as the growing risk of an economic and
financial collapse in the country.
Moody's said it cut Venezuela's local and foreign currency
ratings to Caa1, from B1 and B2 respectively, while the outlook
for the rating was negative.
"The downgrade reflects Moody's view that Venezuela is
facing increasingly unsustainable macroeconomic imbalances,
including a sky rocketing inflation and a sharp depreciation of
the parallel exchange rate," the agency said.
"As government policies have exacerbated these problems, the
risk of an economic and financial collapse has greatly
Moody's said the negative outlook reflected its expectation
that conditions would continue to deteriorate. However, the
outlook could stabilize if macroeconomic imbalances are reduced
to levels that do not threaten an economic collapse.