S&P rates Petroleos de Venezuela notes B-

Standard & Poor's said it assigned a B- debt rating to Petroleos de Venezuela SA's proposed $5 billion senior unsecured notes due 2024.

Its subsidiary, PDVSA Petroleo SA, unconditionally and irrevocably guarantees the notes.

The rating on the notes reflects the corporate credit rating on Petroleos de Venezuela, which is based on its B- stand-alone credit profile and an opinion that there is an almost certain likelihood of extraordinary government support to the company under financial distress scenarios, S&P said.

The company plays a critical role as it contributes about 50% of Venezuela's fiscal revenues and 90% of its exports, the agency said, and plays a key role in meeting the sovereign's political and economic objectives, the agency said.

The ratings also consider the company's weak business risk profile due to the government's significant intervention and the challenges associated with boosting production, S&P said.

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