The ratings on Petroleos de Venezuela S.A. (PDVSA), the Venezuelan national oil company, reflect the foreign currency rating of its lone shareholder, the Republic of Venezuela. The rating on the two entities are the same because of the government's ability to exert control over PDVSA's finances and its dependence on PDVSA's cash flow for meeting its own obligations. The ratings on PDVSA and Venezuela are identical also because the government uses PDVSA's cash flow, which plays a central role in Venezuela's economy, during fiscal crises to defend the country's currency and to fund government budget objectives. PDVSA, which exports about 2.82 million barrels per day, is an attractive source of funds for the government as it is the primary generator
