The ratings of Petroleos de Venezuela, S.A. (PDVSA), the Venezuelan national oil company, reflect the foreign currency rating of its lone shareholder, the Bolivarian Republic of Venezuela. Standard&Poor's maintains the same rating on PDVSA as on the Republic of Venezuela because of the government's ability to exert substantial control over PDVSA's finances and its dependence on PDVSA's cash flow for meeting its own obligations. Branches of the government have direct control over the company's budget, tax regime, appointment of officers, debt management, and dividend policies. In addition, the vast majority of PDVSA's assets are located in Venezuela, exposing the company to political risks in that country. The ratings for PDVSA and the government have been equalized because the
