Monday, September 27, 2010

Moody's (NYSE:MCO) Says BP (NYSE:BP) Credit Swaps Trading at Investment Grade

According to the market research arm of Moody’s Investors Service (NYSE:MCO), BP (NYSE:BP) credit default swaps are trading at investment-grade levels.

BP debt protected by credit default for a five year period dropped 3.4 basis points to 188.5 shortly after 11:00 AM EDT in New York, according to CMA, a provider of data for the industry. CMA data reveal the CDS contracts have dropped 681 basis points since June 16.

Trading levels imply the company is trading at a rating of Baa3, while Moody's has a rating of A2 on the debt, four levels about the implied rating.

Baa3 is the lowest rung of the investment-grade rating system of Moody's.

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