Standard&Poor's Ratings Services' 'B+' foreign currency corporate credit rating on Petroleos de Venezuela S.A. (PDVSA) is on CreditWatch with developing implications. The CreditWatch developing means that a rating may be raised, lowered, or affirmed. In addition to our ongoing concerns regarding PDVSA's ability to finance both sustaining capital expenditures and growth initiatives, the CreditWatch listing reflects the absence of timely financial and operating information for PDVSA (particularly its audited financial statements). We expect to resolve PDVSA's CreditWatch listing upon a full review of the issuer's operating&financial prospects. To date, the ratings on PDVSA, Venezuela's national oil company, have reflected the sovereign rating on Venezuela, its lone shareholder. We believe that the creditworthiness of PDVSA and Venezuela
