18 June 2010 14:38 [Source: ICIS news]
TORONTO (ICIS news)--Moody’s on Friday cut its ratings for BP by several notches, citing the company’s continued failure to bring the US Gulf coast oil spill under control amid mounting costs and claims for damages.
The credit ratings agency – which had already downgraded BP on 3 June – said all its BP ratings remained on review for possible further downgrades.
Meanwhile, US analysts and media accused BP chief executive Tony Hayward of essentially “stonewalling” Thursday’s ?xml:namespace>
Others, however, pointed out that previous
Moody’s, for its part, said it believed that costs for containment, clean-up, litigation and fines were likely to be higher than it had previously expected, in view of the widespread and continuing physical and economic damage.
BP’s agreement with the
However, that fund would not cap in any way BP’s potential liabilities, the agency warned. Rather, uncertainty over the ultimate cost for massive litigation claims and other contingent liabilities would be an overhang on BP's creditworthiness for years to come, it said.
Moody’s downgraded the senior unsecured ratings of BP plc and of all long-term debt securities issued by its subsidiaries and guaranteed by BP by three notches to A2 from Aa2.
At the same time, it also downgraded the senior unsecured issuer rating of BP Finance plc by three notches to A3 from Aa3, and it cut the senior unsecured issuer rating of BP Corporation North America Inc by four notches to Baa1 from Aa3.
On 3 June, Moody’s had downgraded BP to Aa2, from Aa1.
Earlier this week, ratings agency Fitch also downgraded its ratings for BP by several notches.
The company's share price was up 2.4% at 368.50 pence at 13:11GMT in London.
($1 = €0.81)
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections