Chávez Risk To Reach Boiling Point

The mounting threats facing Venezuela's political environment have caused us to revise down the country's short-term political risk rating dramatically from 71.7 to 58.5. President Hugo Chávez may find himself at a crossroads if he loses the upcoming constitutional referendum, which is our core view. In such an event, we see the potential for Chávez to adopt a totalitarian handle on power, and cannot rule out the use of military force.

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