BRIEF-Fitch Says Resolving Venezuela's Debt Default To Take Years

Fitch: * FITCH SAYS RESOLVING VENEZUELA'S DEBT DEFAULT TO TAKE YEARS

* SAYS IN SHORT TERM, NEW U.S. SANCTIONS IMPOSED ON STATE-OWNED OIL COMPANY PDVSA WILL DEEPEN VENEZUELA'S ECONOMIC CRISIS * SAYS VENEZUELA'S ONGOING POLITICAL & DIPLOMATIC CRISIS RAISES RISKS OF INCREASED NEAR-TERM ECONOMIC PAIN AND POTENTIAL FOR GREATER DOMESTIC POLITICAL DIVISION

* ON VENEZUELA, SAYS ANY POLITICAL TRANSITION WOULD TAKE TIME TO DELIVER ON DEBT RESTRUCTURING AND MATERIALLY IMPROVING ECONOMIC SITUATION. * SAYS IN VENEZUELA, OIL PRODUCTION WILL LIKELY FALL FURTHER AND MORE QUICKLY AFFECTING ECONOMIC OUTPUT, EXPORTS AND GOVERNMENT REVENUES

* SAYS MILITARY'S POSITION WILL BE KEY TO VENEZUELA'S POLITICAL FUTURE AND THERE IS POTENTIAL FOR A PROTRACTED STALEMATE AND DEEPENING OF POSITIONS * ON VENEZUELA, SAYS DOMESTIC DISRUPTION CAUSED BY PROTESTS AND POLITICAL UNCERTAINTY WILL FURTHER DEEPEN SEVERE ECONOMIC DISTORTIONS

* ON VENEZUELA, SAYS IF MADURO ABLE TO RETAIN POWER, REFORM PROSPECTS TO STABILIZE ECONOMY & END HYPERINFLATION LIKELY TO BE DIMINISHED, AT LEAST IN NEAR TERM * SAYS DOMESTIC DISRUPTION IN VENEZUELA CAUSED BY PROTESTS AND POLITICAL UNCERTAINTY WILL FURTHER DEEPEN SEVERE ECONOMIC DISTORTIONS

* ON VENEZUELA, SAYS EXTERNAL AND INTERNAL POLITICAL PRESSURES ON MADURO ADMINISTRATION ARE GROWING SIGNIFICANTLY * ON VENEZUELA, SAYS EVEN IN CASE OF A POLITICAL TRANSITION, A DEBT RESTRUCTURING IS LIKELY TO BE A LENGTHY PROCESS

* SAYS SHOULD SUCCESSFUL POLITICAL TRANSITION COMBINED WITH ECONOMIC STABILITY REFORMS BE IMPLEMENTED, VENEZUELA WILL HAVE SIGNIFICANT POTENTIAL * ON VENEZUELA, SAYS FOR OIL SECTOR & INDUSTRY IN GENERAL, SUSTAINED, SIGNIFICANT INVESTMENT WILL BE NEEDED TO STABILIZE AND INCREASE PRODUCTION

* SAYS PDVSA WOULD NEED TO BE RESTRUCTURED FROM GROUND UP AND INCENTIVES PUT IN PLACE FOR PRIVATE INVESTMENT * ON VENEZUELA SAYS NATURE OF VARIED CLASS OF CREDITORS INCL. PDVSA BONDHOLDERS, BILATERAL LENDERS (ESP. CHINA & RUSSIA) TO BE ADDED OBSTACLES FOR DEBT RESTRUCTURING Source text for Eikon: Further company coverage: