Fitch affirms PDVSA

Fitch Ratings said it affirmed Petroleos de Venezuela SA's B+ foreign- and local-currency issuer default ratings and its AAA(ven) national scale rating. The recovery rating is RR4.

The outlook is stable.

PDVSA's 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. This underscores the close link between the company's credit profile and that of the sovereign, the agency said.

PDVSA's ratings also consider the company's strong balance sheet, sizable proven hydrocarbon reserves and strategic interests in international downstream assets, the agency noted.

The leverage level at 1.0x is low for the rating category, which is limited by credit quality of the Venezuelan government, Fitch said.

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