The current upheaval and scandal in Venezuela has taken some of the focus off of Argentina recently, and, in the face of sovereign chaos, many market participants are wondering what will come of the existing transactions from the state-owned oil giant Petroleos de Venezuela SA (PDVSA). With a securitization program initiated in 1998, the company has repeatedly come to market, issuing debt out of the original program, most recently a $500 million last November, currently rated triple-B by Fitch Ratings and triple-B-minus on CreditWatch negative by Standard & Poor's.

While a sovereign downgrade would not trigger an automatic downgrade of PDVSA, the level of political control and influence of the oil-giant by the government makes such an action likely, said S&P. And, according to Fitch, there are growing concerns related to the government's increasing willingness to access PDVSA's assets during times of financial distress.

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