Fitch rates Petroleos de Venezuela notes B+

Fitch Ratings said it expects to assign a B+ rating to Petroleos de Venezuela, SA's proposed $2.4 billion senior unsecured debt issuance due 2021.

A recovery rating of RR4 also is expected to be assigned.

The proceeds will be used to pay down about $1.3 billion of notes outstanding due 2013 and for general corporate purposes, Fitch said.

The company's credit quality reflects its linkage to the government of Venezuela as a state-owned entity, combined with increased government control over business strategies and internal resources, the agency said.

The ratings also consider the company's strong balance sheet, sizable proven hydrocarbon reserves and strategic interests in international downstream assets, Fitch said.

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