S&P Negative on Venezuela

S&P has lowered the outlook on Venezuela’s B+ credit rating to negative from stable, it says, due to increasing political risk. The close retults of last week’s presidential elections and the doubts as to their legitimacy have increased uncertainty, which could weaken the government’s policy implementation, the agency says. A weakened government seeking less pragmatic and more interventionist policies would increase economic nonequilibrium, and likely prompt a ratings downgrade.