On March 7, 2007, Standard&Poor's Ratings Services raised its long-term foreign currency corporate credit rating on Petroleos de Venezuela S.A. (PDVSA) to 'BB-' from 'B+'. The rating was removed from CreditWatch, where it was placed originally on Feb. 8, 2006, with developing implications and subsequently revised to CreditWatch Positive on Nov. 1, 2006. We also assigned our 'BB-' long-term local currency corporate credit rating to PDVSA. The outlook for all ratings is stable. The rating action follows the completion of a full review of the issuer's operating and financial prospects. The ratings on PDVSA and its sole shareholder, the Bolivarian Republic of Venezuela, are tightly linked. The aforementioned reflects our opinion that PDVSA is a public policy based
