Fitch Comments on Venezuela's Regime Change.
NEW YORK--(BUSINESS WIRE)--April 12, 2002
Fitch Ratings Fitch Ratings
An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. said today that the interruption of democracy in Venezuela is a concern, but that a smooth democratic transition underscored by early elections could underpin a stabilization of sovereign creditworthiness Creditworthiness
The condition in which the risk of default on a debt obligation by that entity is deemed low.
Eligibility of an individual or firm to borrow money. in South America's largest oil exporter. Fitch currently rates the Bolivarian Republic of Venezuela's long-term foreign currency obligations 'B+' and long-term local currency (Venezuelan Bolivar) obligations 'B'. The Rating Outlook remains Negative.
The polarization of Venezuelan society over President Hugo Chavez's policies became apparent in recent months, resulting in capital flight, an economic standstill standstill /stand·still/ (stand´stil?) cessation of activity, as of the heart (cardiac s.) or chest (respiratory s.) .
Complete cessation of activity or progress. , an interruption of oil production, and ultimately bloodshed blood·shed
The shedding of blood, especially the injury or killing of people.
Noun 1. yesterday. With this as a backdrop, early this morning a group of high ranking See Google bomb. military officers demanded President Chavez resign, and Pedro Carmona Pedro Francisco Carmona Estanga (born 1941 in Barquisimeto, Lara, Venezuela) is a former Venezuelan trade organization leader who was briefly declared President of Venezuela during an abortive 2002 military coup against Hugo Chávez. Estanga, the president of the Venezuelan Business Council (Fedecamaras), was presented as the head of a transitional government which will govern Venezuela until elections are held (at a yet to be determined date). Carmona also announced an end to the national strike declared this week, which had paralyzed par·a·lyze
tr.v. par·a·lyzed, par·a·lyz·ing, par·a·lyz·es
1. To affect with paralysis; cause to be paralytic.
2. To make unable to move or act: paralyzed by fear. the country.
The situation remains dynamic and any rating action or change in outlook is likely to await the resolution of the current political crisis. If calm can return to Venezuelan politics; democracy can be restored sooner rather than later; international recognition of the democratic process is forthcoming; oil production and exports resume at normal levels; adequate public debt service management is maintained; and sound economic policies are pursued; then, Fitch believes that the potential for a return to a stable outlook on Venezuela's ratings exists. On the other hand, should political uncertainty persist (punctuated by continued civil strife); should the new government fail to reduce the fiscal deficit and present a credible monetary policy framework; and should capital flight resume; pressure on sovereign creditworthiness could continue in the near-term.