Moody's revises Venezuela ratings outlook

Tue May 27, 2003 03:03 PM ET

NEW YORK, May 27 (<a href=reuters.com>Reuters) - Moody's said Tuesday it revised the outlook for Venezuela's sovereign ratings to stable from developing, citing the recovery in oil production that was battered by a general strike earlier this year.

Moody's said in a statement it changed the outlook to stable for Venezuela's foreign currency country ceiling, which stands at Caa1, or deep into junk bond territory. It also revised the outlook to stable for the local currency rating.

"The end of the strike, when combined with the initiation of widespread capital controls, has meant that the central government is in a stronger political position than was true prior to the December strike," said Moody's. (Reporting by Susan Schneider, editing by J.S. Benkoe; Reuters Messaging: susan.schneider.reuters.com@reuters.net; email: susan.schneider@reuters.com; tel: +1 646 223 6319)