Venezuela Debt Rating Outlook Raised to Stable by S&P

[Judi Lynn]

Source: Bloomberg

Venezuela Debt Rating Outlook Raised to Stable by S&P
By Steven Bodzin

Jan. 11 (Bloomberg) -- Venezuela’s credit rating outlook was raised to stable from negative by Standard & Poor’s, which said last week’s currency devaluation will ease the country’s “fiscal pressures.”

S&P rates Venezuela BB-, three levels below investment grade.

President Hugo Chavez on Jan. 8 devalued the 2.15-per dollar exchange rate, setting a level of 2.6 for imports of essential items including food and medicine and a rate of 4.3 for “non-essential” products.

“The latest government devaluation of the currency, combined with prospects for stable oil revenues, will reduce Venezuela’s fiscal pressures,” S&P said in a statement.

Read more: http://www.bloomberg.com/apps/news?pid=20601086&sid=atzVz7SMZNnU

[dipsydoodle]

1. The outside world

obviously appreciates a common sense approach.

[Socal31]

2. Exactly!

We should instantly devalue the USD, and pay back China everything we owe! Woohoo!

[bossy22]

3. wouldnt exactly work

china would immediatly devalue their currency as well....the Yuan is pegged to the dollar....so wherever the dollar goes, the yuan goes.

[Fool Count]

4. US cannot devalue its currency, since USD is not pegged to

any other currency, commodity or asset. US can only print a lot of new money and see how this
excess supply will negatively affect its relative value. Wait, that's exactly what they are doing.
Good for the debtors, bad for the creditors.

[ChangoLoa]

5. Any neo-liberal financial institution will agree

with a government tightening its country's belt ("ease fiscal pressures") in time of recession. Especially when it concerns a developing country. Does someone think S&P are keynesians?