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PDV AMERICA SENIOR DEBT ISSUE RATED INVESTMENT GRADE BY DUFF & PHELPS

 CHICAGO, July 9 /PRNewswire/ -- Duff & Phelps Credit Rating Co. announced today that it has assigned an investment grade rating of "BBB-" (Triple B Minus) to PDV America's $1 billion issue of senior notes. This rating primarily reflects PDV America's U.S.-based assets and cash flows.
 Proceeds of the offering will be loaned to Petroleos de Venezuela, S.A. (PDVSA) in exchange for notes with substantially the same terms which will fund debt service on the senior notes. The senior, unconditional guarantees provided by PDVSA and Propernyn, the PDVSA subsidiary that holds all PDVSA's non-Venezuelan investments, provide some additional credit security but are not the primary support for the rating.
 "PDV America's U.S. cash flow would be available to pay interest in the event that the mirror note interest was not available," said David Eisinger, Duff & Phelps' vice president and energy company analyst. PDV America also has $3.5 billion in U.S. assets.
 "While the lower sovereign risk of Venezuela does influence our assessment of PDV America, we don't consider it foremost in the rating of this issue," Mr. Eisinger said.
 In its analysis, Duff & Phelps also considers the possibility remote that either PDVSA or the Venezuelan government would jeopardize $3.5 billion of assets as well as potentially impairing the price of PDVSA's crude oil because of lack of outlets just to save under $100 million per year in interest payments. However, the cash flow available to PDV America would be sufficient to pay interest even in the absence of the PDVSA mirror note interest.
 PDV America's principal assets include 100 percent ownership of CITGO Petroleum Corp. and a 50 percent interest in UNO-VEN Company, a joint venture with Union Oil Company of California. CITGO is one of the top five refiners in the U.S. in terms of capacity.
 For a detailed analytical report on this PDV America issue, call Linda Peart at 312-368-3114.
 -0- 7/9/93
 /CONTACT: David W. Eisinger, D.B.A., CFA of Duff & Phelps Credit Rating Co., 312-368-3145/


CO: PDV America ST: IN: OIL SU: RTG

TS -- NY068 -- 0022 07/09/93 15:36 EDT
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Date:Jul 9, 1993
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