August 16, 2005
S&P raises Venezuela's PDVSA senior notes to BB-

(Reuters) - "Standard & Poor's Ratings Services raised to 'BB-' from 'B+' its rating on the outstanding senior unsecured notes of PDVSA Finance Ltd., the financial arm of Venezuela's state oil company.

PDVSA Finance Ltd is the principal vehicle for corporate finance of Petróleos de Venezuela.

Standard & Poor's said the rating on the approximately $88.9 million outstanding senior unsecured notes reflects PDVSA's operational strengths.

It said the importance of oil revenues to the Venezuelan economy would likely allow production to continue even in the event of a default by Venezuela's government or PDVSA.

The notes are backed by current and future receivables generated from the sale of crude oil from PDVSA Petroleo, a subsidiary of PDVSA, to designated customers.