Moody's (NYSE:MCO) Maintaining BP's (NYSE:BP) Rating

Moody's (NYSE:MCO) they have no further downgrades for oil giant BP's (NYSE:BP) credit rating, adding they continue to see the outlook for the company as stable.

The company said, "Today's (Friday) rating action concludes the review for possible downgrade of BP's ratings that Moody's initiated on 3 June."

With the oil well permanently plugged, and the liabilities becoming a little clearer and able to be somewhat estimated, the current A2 credit rating will stay in place "under a range of likely outcomes for the ultimate total costs resulting from the oil spill," said Moody's.

That's not to say there won't be future credit pressures as the costs from claims and lawsuits mount up for BP, but the downgrading of several notches has included those factors in those actions Moody's took recently.

In other words, there could be more downgrades in the future, but in the short term the credit rating should remain where it is for the company.

BP (NYSE:BP) Credit, Third Downgrade By Moody's

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.