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To: Roger Young
S&P revises Venezuela ratings outlook to negative--[Excerpt] NEW YORK, March 18, 2002 (Reuters) - Standard & Poor's said on Monday it revised its credit outlook on Venezuela to negative, indicating that a ratings downgrade may be on the way if critical economic reforms are held hostage to the political tension gripping the country.

``The current situation has led to political polarization and a sense of frustration among the population at large, including the business and labor sectors, the Catholic church, and the military,'' S&P said in a statement.

``This, in conjunction with presidential statements about the possibility of nationalizing banks ... and the danger of exchange controls or a state of emergency, have created an environment that is not conducive to investment and growth.''

The ratings agency affirmed Venezuela's single-B long- and short-term foreign currency sovereign credit ratings. At single B, the ratings are five notches below investment grade.

A downgrade would increase the cost of borrowing for the world's No. 4 oil exporter at a time when President Hugo Chavez is facing stiff domestic opposition to his leftist agenda and authoritarian style. [End Excerpt]

I guess the greedy investors are against Chavez too. Gosh, I thought they'd go anywhere and deal with anyone, to realize a profit. What investment are you talking about, Chinese investment?

16 posted on 03/24/2002 6:30:53 AM PST by Cincinatus' Wife
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