September 20, 2004
Fitch upgrades Venezuela by two notches to 'B+'
(Reuters) - "Fitch Ratings said on it upgraded Venezuela's long-term foreign currency credit rating by two notches to 'B+' from 'B-' on the back of President Hugo Chávez's recent referendum win and higher global liquidity.

Fitch also raised Venezuela's long-term local currency credit rating to 'B+' from 'B-'.

The agency said it raised the country ceiling to 'B+' from 'B-' and that the outlooks for the ratings were stable.

Fitch's upgrade came after Moody's and Standard and Poor's also upgraded Venezuela following the Aug. 15 referendum on Chávez's rule.

(…) Wall Street perceives Venezuela as being more stable, and able to maintain a steady flow of all-important oil revenues now that he has consolidated his hold on power.

'The referendum ... settled political uncertainty,' Roger Scher, Fitch's managing director or Latin American Sovereign Ratings told Reuters. 'It looks like the standoff between the opposition and Chávez has cooled off.'

Fitch said Venezuela's international reserves now stand at $21.3 billion, well in excess of next year's estimated $5.4 billion in interest and principal obligations on the government's external debt.

The agency said that compared with other 'B' range sovereigns, Venezuela stands out for its very low net public external debt".