EL UNIVERSAL

Moody's Investors Service pushed down the Hamaca, Petrozuata and Sincor ratings from B1 to B2. According to Bloomberg, the measurement affects the existing debt of USD 2.5 billion.

The rater, which is among the world's most respected and widely utilized sources for credit ratings, research and risk analysis, noted that the downgrade mirrors the changes recorded this week, when state-run oil holding Petróleos de Venezuela (Pdvsa) entered into memos of understanding for migration to joint ventures. Seven out of the 11 oil companies with a stake in strategic partnerships agreed on Pdvsa conditions.

Exxon, Conoco, PetroCanada and Opic failed to fit in the business schedule proposed by the Venezuelan oil corporation and relinquished their oil interests. Total, Statoil, Eni, Chevron, BP, Ineparia and  Sinupec abode by the terms. Now, Pdvsa has the majority shareholding in the Orinoco Oil Belt, with 78.3 percent of the stocks.
 
Moody's noted that the rating for Cerro Negro -where Exxon had a stake- is being reviewed in the event of default. The partnership debt accounts for USD 600 million.

Standard and Poor's prepared also a report on the partnerships, particularly on Petrozuata -where ConocoPhillips had an interest. The firm did not downgrade the partnership rating. However, it has kept a watchful eye over the issue, due to the oil firm decision not to accept the migration terms.

Anyhow, a report from Lehman Brothers claimed that the decision made by ConocoPhillips to quit the operations would have a modest impact on the company's financials.

Following the decision of the four oil companies, Pdvsa bonds did not vary so much. However, the debt notes in the international market slipped back. The prices of Pdvsa notes ending 2017-2037 remained steady.

Translated by Conchita Delgado
cdelgado@eluniversal.com

See the special feature on Migration of oil partnership to joint ventures