S&P lowers PDVSA to B+

Standard & Poor's said it lowered Petroleos de Venezuela SA's long-term corporate credit rating (PDVSA) to B+ from BB-.

The outlook remains negative.

The agency said the downgrade reflects the company's tighter liquidity and, in S&P's view, a heightened uncertainty regarding its willingness to meet its contractual obligations with some of its suppliers. In the agency's opinion, claims of increased past-due accounts payable and the recent nationalization of oil service companies respond mostly to liquidity constraints but also in part to decisions taken by the central government.

The ratings continue to be supported by PDVSA's position as one of the world's leading integrated national oil companies, S&P said.

The negative outlook reflects the agency's views about PDVSA's liquidity and its willingness to meet its obligations with suppliers, as well as the negative outlook on Venezuela.

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