``The current situation has led to political polarization and a sense of frustration among the population at large, including the business and labor sectors, the Catholic church, and the military,'' S&P said in a statement.
``This, in conjunction with presidential statements about the possibility of nationalizing banks ... and the danger of exchange controls or a state of emergency, have created an environment that is not conducive to investment and growth.''
The ratings agency affirmed Venezuela's single-B long- and short-term foreign currency sovereign credit ratings. At single B, the ratings are five notches below investment grade.
A downgrade would increase the cost of borrowing for the world's No. 4 oil exporter at a time when President Hugo Chavez is facing stiff domestic opposition to his leftist agenda and authoritarian style. [End Excerpt]
Chavez, a 47-year-old former paratrooper who has strengthened oil-rich Venezuela's ties with Communist Cuba, has often praised Castro's socialist revolution and expressed similar anti-capitalist and "anti-imperialist" views.
Hailing the Venezuelan leader's "spirit and enthusiasm", the veteran Cuban president said Chavez would address the U.N. conference in Mexico as president of the Group of 77, which represents more than 130 developing countries.
"No other voice could be better than yours to defend the interests of the (Group of) 77. ... You will have the possibility of putting forward the point of view of the progressive people of the world," Castro added.[End Excerpt]