On Dec. 10, 2008, Standard&Poor's Ratings Services revised its outlook on Petroleos de Venezuela S.A. (PDVSA) to negative from stable. At the same time, we affirmed our 'BB-' long-term corporate credit rating on the company. The outlook revision follows the outlook change on the Bolivarian Republic of Venezuela to negative from stable. The ratings on PDVSA and Venezuela, its sole shareholder, 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%). PDVSA
