On Feb. 12, 2002, Standard&Poor's placed its foreign currency corporate credit rating for Petroleos de Venezuela S.A. (PDVSA) on CreditWatch with negative implications. At the same time, it also placed the ratings on PDVSA's U.S. downstream affiliates, PDV America Inc. and CITGO Petroleum Corp. on CreditWatch with negative implications. The rating actions followed Standard&Poor's placement on Feb. 11, 2002, of its long- and short-term foreign currency sovereign credit ratings on the Bolivarian Republic of Venezuela on CreditWatch with negative implications. The CreditWatch action indicates the increased probability of a downgrade of the sovereign and PDVSA ratings unless anticipated government actions restore investor confidence. Although the incentives to distinguish the ratings between PDVSA and its U.S. affiliates
