Venezuela's New PDVSA 2020 Rated Caa3 by Moody's

Moody's Investors Service ("Moody's") assigned a Caa3 rating to Petroleos de Venezuela, S.A. ("PDVSA")'s 8.5% $3.4 billion in senior secured notes due 2020. The outlook on the rating in negative. On October 28, 2016, PDVSA exchanged its 5.250% senior notes due 2017 and 8.50% senior notes due 2017 for 8.50% $3,367,529,000 senior secured notes due in October 2020. The 2020 notes will be amortized in four equal installments, starting in 2017. The 2020 notes are secured by a first-priority security interest on 50.1% of the capital stock of CITGO Holding, Inc. (Caa1 stable) and are unconditionally and irrevocably guaranteed by PDVSA Petroleo, S.A. (unrated). More…