February 3, 2006
Venezuela long-term debt rating raised by Standard & Poor's to BB

(Bloomberg) - "Venezuela had its foreign currency debt rating raised one level by Standard & Poor's, which cited 'buoyant economic growth' and higher international reserves.

S&P raised the debt rating to BB-, three levels below investment grade, from B+.

Venezuela , the world's fifth-largest oil exporter, has foreign reserves that top $28 billion and "very little'' international debt coming due over the next two years, S&P said in a statement.

'On the positive side, Venezuela's debt-to-GDP ratio has fallen over the last two years and will likely fall further in the coming years,' said Benito Berber, an analyst with HCSB Securities in New York. 'On the bad side, the country's fiscal solvency remains dependent on the price of oil, which is a significant vulnerability'.

Record oil exports last year fueled a surge in government spending and a 9.4 percent expansion of gross domestic product. Venezuela 's debt as a percentage of GDP fell to 38 percent last year from 46 percent in 2003.(...)".