On Sept. 24, 2002, Standard&Poor's Ratings Services downgraded its corporate credit rating on Petroleos de Venezuela S.A. (PDVSA) to 'B-' minus from 'B'. The outlook is negative. The ratings downgrade reflects the downgrade of the credit ratings of the Bolivarian Republic of Venezuela. Future ratings changes will be linked to those on the Bolivarian Republic. The ratings of PDVSA, the Venezuelan national oil company, reflect the foreign currency rating of its lone shareholder, the Bolivarian Republic of Venezuela. Standard&Poor's maintains the same rating on PDVSA as on the Republic of Venezuela because of the government's ability to exert substantial control over PDVSA's finances and its dependence on PDVSA's cash flow for meeting its own obligations. Branches
