On Oct. 6, 2006, Standard&Poor's Ratings Services said that its 'B+' long-term foreign currency corporate credit rating on Petroleos de Venezuela S.A. (PDVSA) remains on CreditWatch with developing implications. The announcement follows Standard&Poor's announcement that it has affirmed its 'BB-/B' sovereign credit ratings on the Bolivarian Republic of Venezuela. The outlook was revised to positive from stable. The CreditWatch Developing means that a rating may be raised, lowered, or affirmed. In addition to our ongoing concerns regarding PDVSA's ability to finance both capital expenditures and growth initiatives, the CreditWatch listing reflects the absence of timely financial and operating information for PDVSA (particularly its audited financial statements). We expect to resolve PDVSA's CreditWatch listing upon a full
