( BW)(NY-FITCH-RATINGS) Fitch Revises Rtg Watch Status on Debt Rtgs of PDVSA-Rltd Trans: Petrozuata, Cerro Negro, Sincor, & Hamaca

BW5696 JUN 24,2003 11:17 PACIFIC 14:17 EASTERN     Business Editors     CHICAGO--(<a href=www.businesswire.com>BUSINESS WIRE)--June 24, 2003--Following Fitch Ratings' recent rating actions that upgraded the Bolivarian Republic of Venezuela's foreign currency rating and the senior unsecured debt rating of Petroleos de Venezuela S.A. (PDVSA) to 'B-' from 'CCC+', Fitch Ratings has revised the Rating Watch to Positive from Negative on the following PDVSA-related transactions:     Petrozuata Finance Inc. (Petrozuata), senior secured debt rating 'B' -- US$300 million series A bonds due 2009;
-- US$625 million series B bonds due 2017;
-- US$75 million series C bonds due 2022.

    Cerro Negro Finance, Ltd. (Cerro Negro), senior secured debt rating 'B'     -- US$200 million bonds due 2009;     -- US$350 million bonds due 2020;     -- US$50 million bonds due 2028.

    Sincrudos de Oriente Sincor, C.A. (Sincor project), senior secured debt rating 'B'     -- US$1.2 billion senior bank loans borrowed by the sponsors of     Sincor Finance Inc.     Petrolera Hamaca, S.A. (Hamaca), senior Secured Debt Rating 'B'     Total senior project loans of US$1.1 billion, consisting of:     -- US$627.8 million senior agency loan due 2018;     -- US$470 million senior bank loan due 2015, borrowed on a several  (not joint) basis 30% by Corpoguanipa, S.A., a subsidiary of PDVSA, and 70% by Hamaca Holdings L.L.C.     Fitch is currently reviewing each of the projects, and shall follow up with corresponding rating actions if necessary in the coming weeks.     Petrozuata is owned 50.1% by a ConocoPhillips subsidiary and 49.9% by a PDVSA subsidiary. Cerro Negro is owned 41.67% by an ExxonMobil subsidiary, 41.67% by a PDVSA subsidiary and 16.67% by a Veba Oel subsidiary. Sincor is owned 47% by a TOTALFinaElf subsidiary, 38% by a PDVSA subsidiary and 15% by a Statoil subsidiary. Hamaca is owned 40% by ConocoPhillips subsidiary, 30% by ChevronTexaco subsidiary, and 30% PDVSA subsidiary. All four projects are involved in the development of Venezuela's extra heavy crude oil reserves.

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KEYWORD: NEW YORK
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SOURCE: Fitch Ratings