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Moody's withdraws rating of $5B Venezuela bond due 2036

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Moody's withdraws rating of $5B Venezuela bond due 2036

Moody's said it has withdrawn its Caa3 rating of the $5 billion, 6.5% Venezuela bond due on Dec. 29, 2036, for "business reasons." The rating agency did not elaborate.

According to Moody's policy, withdrawing a credit rating for "business reasons" refers to its business reasons, not the business reasons of the rated entity. Moody's added its business reasons "generally do not reflect any concerns about the rated entity's creditworthiness or the quality of its management."

Moody's said that when it decides to withdraw a rating, it "seeks to balance the informational benefit to market participants from maintaining a Credit Rating against the resources required to maintain and monitor that Credit Rating or other business considerations."

Moody's downgraded Venezuela to Caa3 from Caa1 in January 2015 and placed a negative outlook on the rating in March 2016.