Venezuela Lowered

S&P has lowered Venezuela’s credit rating to B from B+, it says, based on challenges the agency sees to the post-Chavez government’s ability to implement policy. “Political polarization and internal challenges within the Venezuelan government threaten to weaken the implementation of economic policies at a time of worsening economic conditions with decelerating GDP growth, increasing inflation, and growing pressures on external liquidity,” S&P says, noting that the uncertainty threatens governability. GDP growth is decelerating sharply in 2013, and S&P expects it to approach zero. Inflation may reach near 40% by year-end. The outlook is negative. Moody’s has had its B2 rating on negative outlook since January, and Fitch’s B+ has been negative since April.