S&P rates PDVSA notes B+

Standard & Poor's said it assigned a B+ senior unsecured debt rating to the $3 billion notes due 2017 proposed by Petroleos de Venezuela SA (B+/stable). The notes benefit from the unconditional and irrevocable guarantee of payment by PDVSA's subsidiary, PDVSA Petroleo SA (not rated).

Proceeds will be used for general corporate purposes, including capital expenditures and social development expenses.

"The rating on the company's senior unsecured notes is based on our expectation that the ratio of priority liabilities to total assets will remain below 15%, allowing for no structural subordination of the notes," S&P analyst Fabiola Ortiz said in a statement.

Ratings reflect extremely high likelihood of support from the government of Bolivarian Republic of Venezuela (BB-/stable/B).

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