Business

BP ratings fall headfirst
by Zivka Deleva

The consequences from the biggest ecological disaster ever, the British Petroleum is paying day by day. Not only that the BP management has to stand up with all the criticism through the whole world and it spends big sum of money in the need to compensate the spill victims from the Gulf of Mexico. The news now is that on the rating agency Fitch Ratings, the oil company has downgraded for six-notch. And that is a lot. From the rating AA, the BP now is BBB. One day before, the finance director of the British Petroleum Byron Grote expressed his hope that his company will keep its AA rating, but unfortunately he was wrong. Fitch Ratings is not the first rating agency that reduc! ed BP’s position on the market. Few weeks ago, the Moody’s and Standard and Poor’s did the same. The main explanation of the Fitch Ratings was that the uncertainties that BP is confronted from, especially the costs that the company has to pay for the cleaning of the mess from the oil spill. "We think the Credit Default Swap market is overdone hence our decision to shift rating to BBB," said Jeffrey Woodruff, senior director in Fitch's EMEA Energy team and lead analyst for BP. But, everything is not lost. There is still something that can be done for the company to return its reputation. If the clean up action goes well, the company will get back its position and earn back some notches. The US officials estimated that the British company will have to give $20 billion to pay for the clean-up bill of the Gulf of Mexico.It's British Petroleum turn now to put the hands in its pockets.

by Zivka Deleva for Cantell TV (http://cantell.tv)

Cantell TV is the fastest growing provider of digital broadcasting coupled with telecommunications, allowing people to easily control, view, upload and share digital content through proprietary interface coupled with free phone calls. Cantell TV is committed to delivering infinite choices to your world of entertainment at the tip of your fingers.

posted by Blog TechSource @ 2:34 PM