CARACAS, Oct 17 (Reuters) - Fitch Ratings on Monday said Venezuela’s credit profile faces increased risk of deterioration if increased borrowing is met with a “significant” macroeconomic shock.
Venezuela, rated B-plus by Fitch, sold an additional $3 billion worth of debt maturing in 2026 at a discounted price of 95 cents on the dollar with a coupon of 11.75 percent.
The OPEC member’s borrowing, between the government and the state-run oil company PDVSA, totals $15.2 billion so far in 2011.
“Despite high oil prices and a return to economic growth in 2011, Fitch Ratings views heavy government and oil sector borrowing as risk factors that could affect (Venezuela’s) credit profile if global economic conditions worsen in 2012,” Fitch said in statement.
“While the sovereign’s manageable amortization profile and strong oil revenues continue to support debt service capacity, a significant macroeconomic shock could erode sovereign credit quality quickly,” it said. (Reporting by Daniel Bases and Caryn Trokie in New York)