Latin America's economy is exposed to political risk, says Moody's.
Political risk in Latin America is a major challenge for debt issuers in the region, as it can potentially threaten economic growth, political reforms, and financial conditions, said the Moody's rating agency in a report; countries with high or medium susceptibility to political risk include Venezuela and Argentina; while political risk is comparatively more moderate in Brazil, Colombia, Peru, Mexico, and Chile.
Reuters Political risk in Latin America poses a major challenge for debt issuers in the region, as it can potentially threaten economic growth, political reforms, and financial conditions, the Moody's rating agency said in a report on Tuesday.
Countries with a high or medium level of susceptibility to the risk of political events include Venezuela and Argentina.
Political risk is comparatively more moderate in Brazil, Colombia, Peru, Mexico, and Chile, Moody's said.
"Elevated political risk increases investors' concerns about policies with negative outcomes, affecting market confidence," said Moody's Senior Vice President Gersan Zurita in the report.
"Uncertainty related to politics increases risk premiums, negatively impacting equity and debt valuations, and causes currency volatility," he added.