On Dec. 13, 2002, Standard&Poor's Ratings Services lowered its corporate credit rating on Venezuelan state oil company Petroleos de Venezuela S.A. (PDVSA) to 'CCC+" 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 Venezuela. The ratings downgrade also reflects the near paralysis of PDVSA's operations caused by labor unrest and political tensions within Venezuela. In recent days, PDVSA's production volumes reportedly have fallen by about 70% and little to no oil and refined products have been exported. PDVSA has declared force majeure on all crude oil supply contracts and risks a near complete operational shut-down if
