The ratings on Petroleos de Venezuela S.A. (PDVSA), the national oil company of Venezuela, reflect the foreign currency rating of its lone shareholder, the Bolivarian Republic of Venezuela. Although PDVSA is one of the largest and lowest-cost producers, refiners, and marketers of crude oil and refined products in the world and has a relatively strong financial position (which appears to have been strengthened recently by its decision to tender for outstanding tranches of PDVSA Finance Ltd.'s bonds), Standard&Poor's maintains the same rating on PDVSA as on 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
