Fitch: PDVSA unaffected

Fitch Ratings said it expects a British court order to freeze up to $12 billion of Petroleos de Venezuela SA's worldwide assets to have a minimum impact on the company's day-to-day operations, near-term credit quality and financial flexibility. In order to comply with this court order, PDVSA must maintain $12 billion of unencumbered assets anywhere in the world. The order in and of itself does not prevent PDVSA from transacting business.

PDVSA is expected to oppose this decision and present its opposing arguments later this month, the agency said, and the enforcement of this order and the applicability of British jurisdiction over assets domiciled outside of the United Kingdom remain unclear at this time.

This order is part of the legal wrangling over the ongoing dispute between PDVSA and Exxon Mobil Corp. regarding the nationalization of the Cerro Negro heavy oil project in the Orinoco belt, Fitch said. The compensation to Exxon Mobil for this action remains in dispute and is currently in arbitration, and the outcome of this arbitration process remains uncertain.

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