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S&P downgrades Venezuela to B+

S&P cut Venezuela’ long-term foreign and local currency ratings to B+ from BB- with a stable outlook on the grounds that its new methodology assigns greater weight to political risk. They said that President Chavez’ health issues could increase political uncertainty and that reports about the repatriation of gold reserves add uncertainty about the level of those reserves. They added that they expect Venezuela to maintain its low credit rating unless it manages to make serious improvements in terms of economic activity and political stability.