Fitch affirms PDVSA Finance

Fitch Ratings said it affirmed PDVSA Finance Ltd.'s BB- foreign currency rating following the review of the proposed tender offer and amendments to the company's transaction.

The amendments to the transaction are associated with the tender offer by Petróleos de Venezuela SA to retire at least 50% of the outstanding PDVSA Finance notes, which total $2.2 billion and €88.4 million.

While the amendments contemplate the removal of some of the collateral associated with PDVSA Finance, Fitch said it believes the overall deleveraging of the vehicle compensates investors and allows it to reaffirm its current rating.

While Fitch noted it has some concerns associated with the removal of the collateral, it believes the overall reduction in debt will offset these issues. Fitch believes the BB- rating is based entirely on the company's commercial need to export oil to the remaining designated customers.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.