BP's (NYSE:BP) credit rating has been hit with its third downgrade from the rating agency Moody's Investors Service on Friday. They said, "Moody's updated assessment is that the spill will have a sustained negative impact on the groups free cash flow generation and overall financial profile for a number of years." BP dropped from Aa2 to A2, June 3 decline was from Aa1 to Aa2.
Standard and Poors 500 also lowered their rating of BP on Thursday. This is the second downgrade they have given BP in a month from an A to A-1. On Tuesday, Fitch also dropped their rating six notches of BP's long term debt to just above junk level.
David Staples, managing director of Moody's Corporate finance group said," the oil leak has to stop. As long as the oil leak continues, the costs continue to mount and the exposure to litigation continues. BP declined to comment on the downgrade. Staples did say that BP would remain on close review for further future downgrades.
Bryon Grote, BP's Chief Financial officer did say on Wednesday that he hoped the deal struck with the White House would help reinforce their prior rating of AA from Moody's.
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