BP's Credit Rating Downgraded

NEW YORK — Two credit ratings agencies have downgraded BP, noting the extreme financial risks tied to the ongoing Gulf oil spill.

Both Fitch Ratings and Moody's Investors Service said further downgrades are possible.

"The company has so far repeatedly failed to stop the resultant oil leak and has instead reverted to containment methods that are yet to be fully implemented and are subject to potential weather-related disruption," Fitch Ratings said.

Fitch downgraded BP PLC's Long-term Issuer Default Rating and senior unsecured rating to "AA" from "AA+". Moody's Investors Service also downgraded BP to "Aa2" from "Aa1". Despite the downgrades, BP's rating remains among the highest for both agencies.

Besides failing to plug the well, Fitch said a number of factors could hurt the company. The agency noted the possibility of new laws that could force BP to pay more than currently expected. The oil company could be responsible for long-term unemployment benefits for Gulf Coast residents, job training and added costs of environmental tests.

Fitch also said it is concerned about BP permanently halting drilling activity in the Gulf and noted a federal investigation could warrant criminal or civil penalties against the company.

Efforts to plug the well and cleanup the oil will cost between $2 billion and $3 billion this year, Fitch said.

Comments

[dragonladywaltham]

12:07 AM on 06/07/2010

The rating wasn't dropped far enough to suit me.

[RobinSeattle]

01:00 PM on 06/06/2010

More disturbing stock market news:
http://www.youtube.com/watch?v=v-LU4Y_ERxs

[Waiting for Something]

10:26 AM on 06/05/2010

My baby granddaughter will likely never get to see the ecosystem of the gulf that I have enjoyed over my lifetime. I could care less about BPs credit rating, or anything other than the lives of the people who died in the explosion, their families and friends, the ocean, the fish, birds and other effected wildlife, and all those whose livelihoods and on the gulf and surrounding areas are in ruins.

I have become nearly despondent over this and can't seem to shake this hopeless feeling. Seeing the pelicans covered in oil makes me want to weep.

[Brett Holmes]

09:36 PM on 06/03/2010

If history proves correct this won't harm them much.

[mellene]

06:52 PM on 06/03/2010

I can't imagine why this would surprise anyone with their stock price dropping off a cliff and the coming potential lawsuits mounted against them. I'm sure they'll have to make some tough decisions very soon about management of the corporation. The board must be having a tough time sleeping at night.

[CKMJr]

06:37 PM on 06/03/2010

least of their worries

[hard center]

01:39 PM on 06/03/2010

Rnc Drill baby drill

http://www.youtube.com/watch?v=8o0iJDA7_lY

Jindal We don't want the government in our affairs.
The government if not working fast enough to make BP be responsible.
Remove the moratorium on offshore drilling to allow BP and other oil companies to Drill right away
Am confused as he__

Bobby Jindal Asks Obama To End Moratorium On Deepwater Drilling

What

BP has began to open it Wallet to Louisiana Politicians

And the anti speeches have become Pro speeches

[ResearchtheFacts]

03:38 PM on 06/03/2010

Could hardly watch that garbage video but thanks for posting it. Now I have one for you http://www.youtube.com/watch?v=if-o_pKxbEA.

Yours was cause and mine is affect.