PDVSA debt rise will not affect ratings-Moody's

NEW YORK, Jan 25 (Reuters) - The massive debt increase in Venezuela's state-owned oil company PDVSA will not affect its credit ratings, Moody's Investors Service said on Friday, adding that it expects the company's debt load to keep growing in the future.

"PDVSA's financial leverage remains relatively modest, with total debt-to-capitalization in the area of 20 percent, the ratings agency said in a statement.

"Moody's does not see potential increases in leverage as affecting the company's credit ratings for the foreseeable future," it said, explaining that "the low level of the rating already incorporates the political risk associated with PDVSA."

PDVSA announced on Tuesday its total consolidated debt jumped to $16 billion in 2007, from approximately $3 billion at the end of 2006. (Reporting by Walter Brandimarte; Editing by Diane Craft)