Fitch to rate Pdvsa notes B/RR4

Fitch Ratings said it expects to assign a B/RR4 rating to Petroleos de Venezuela, SA's (Pdvsa) proposed $5 billion senior unsecured issuance.

The company expects to use the proceeds from the issuance to finance its investment program as well as for general corporate purposes.

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.

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

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