[Marxism] S&P revises Bolivia outlook to stable from negative

Fred Fuentes fuentf01 at tartarus.uwa.edu.au
Thu Aug 5 08:50:28 MDT 2004

Bonds News
                            UPDATE 1-S&P revises Bolivia outlook to stable
from negative
                            Wed Aug 4, 2004 05:08 PM ET
                            (Adds details, background)

                            NEW YORK, Aug 4 (Reuters) - Standard & Poor's
on Wednesday revised its outlook on
                            Bolivia to stable from negative based on the
results of a recent referendum over the
                            politically sensitive issue of the country's
natural gas production.

                            The ratings agency also affirmed the South
American country's 'B-' long-term and 'C'
                            short-term credit ratings.

                            Bolivian President Carlos Mesa last month won a
referendum aimed at tightening
                            government control over the land-locked
nation's huge natural gas reserves and appeasing
                            a poor Indian majority, rebelling against years
of U.S.-backed market reforms.

                            "The results the government obtained in the
referendum and the peaceful and orderly
                            nature of the voting process open an
opportunity for the government to regain political
                            momentum to move ahead with two politically
sensitive issues," S&P said in a statement.

                            "These are the approval of a new hydrocarbon
law that establishes a workable tax structure
                            for the sector and a final decision on the port
through which the country will export natural
                            gas to North America," it said.

                            S&P said the still low 'B-' rating "reflects
the significant challenges the administration
                            faces in the highly uncertain environment,
especially given the lack of explicit support
                            from the traditional parties."

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