The ratings on Petroleos de Venezuela S.A. (PDVSA) and Venezuela are equalized because of their ties of ownership and economic interests. Through its subsidiaries, PDVSA engages in the exploration and production of crude oil and natural gas (upstream) and the refining, marketing, and distribution of crude oil, refined products, and petrochemicals. The ratings on PDVSA, Venezuela's national oil company, reflect the foreign currency rating on Venezuela, its lone shareholder. Standard&Poor's Ratings Services maintains the same rating on PDVSA as it does 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 over the company's budget,
