On April 23, 2008, Standard&Poor's Ratings Services affirmed its 'BB-' long-term corporate credit rating on Petroleos de Venezuela S.A. (PDVSA). The outlook is stable. The rating on PDVSA and its sole shareholder, the Bolivarian Republic of Venezuela (BB-/Stable/B), are tightly linked, reflecting our opinion that PDVSA is a public policy-based institution that plays a central role in meeting the sovereign's political and economic objectives. The ties of ownership and economic interests between PDVSA and Venezuela are evident in the significant contribution of the oil industry to government revenues (50%) and the country's exports (90%). The sharp increases in direct social spending by PDVSA and recent investments in nonoil-related assets provide further support to our opinion. The ratings assigned
