Fitch to rate PDVSA notes B+

Fitch Ratings said it affirmed Petroleos de Venezuela SA's (PDVSA) foreign- and local-currency issuer default ratings at B+ and national scale rating at AAA(ven).

The ratings affirmed at B+ with a recovery rating of RR4 include its $3 billion senior notes due 2017, $3 billion zero-coupon notes due 2011, $618 million senior notes due 2013, $1.3 billion senior notes due 2014, $1.3 billion senior notes due 2015, $400 million senior notes due 2016, $3 billion senior notes due 2017, $3 billion senior notes due 2027 and $1.5 billion senior notes due 2037.

Fitch also said it expects to assign B+ and recovery ratings of RR4 to the company's proposed $3 billion senior debt issuance due 2020, 2021 and 2022.

The outlook is stable.

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

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

© 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.