Saturday, August 9, 2014

Venezuela/China: Beijing's Credit Reporting Agency Downgrades Caracas From BB+ to BB-

According to The Latin American Tribune, Dagong Global Credit Rating Co., Ltd. has downgraded the local and foreign currency sovereign credit ratings of the Bolivarian Republic of Venezuela from BB+ to BB-, each with a negative outlook.

"Serious macroeconomic imbalance will drag Venezuela into recession in the short term, and exacerbate the risk of social unrest. Its large fiscal deficit, insufficient international reserves and the pressure of significant devaluation of the local currency contribute to an evident trend of decrease in the local and foreign currency solvency of the government," says Dagong. 

For the entire text of the Dagong assessment see: