Moody's confirms Venezuela foreign-currrency bond rating

Moody's Investors Service on Wednesday confirmed the foreign-currency bond rating for Venezuela at B2, and removed the rating from review for possible upgrade. The removal was, in part, the result of the 'dramatic drop' in oil prices since September when Moody's placed the rating on review. Oil represents 50% of the Venezuelan government's revenue and more than 90% of its export earnings. The agency said the country has a history of boom-bust cycles, but that it's entered this down phase better positioned than in the past, with financial assets of more than 20% of gross domestic product. 'A new referendum on eliminating presidential term limits, expected for early 2009, will put further pressure on the government's ability to manage fiscal pressures even as a low debt burden and ample financial reserves provide a significant cushion,' said Gabriel Torres, a Moody's vice president, in a statement.