An unfavorable macroeconomic situation, coupled with the political uncertainty that followed Hugo Chavez's election for president seem to have temporarily dampened the prospects for Venezuelan securitizations.

On the economic front, a severe recession has weakened credit demand and prompted Duff & Phelps (DCR) to assign relatively pessimistic foreign and local currency ratings of single-B-plus, while declining loan interest rates mean that banks are a more appealing source of financing than the capital markets.

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