Credit Rating Agencies Downgrade BP

Credit rating agencies Fitch and Moody's have downgraded BP, citing the costs of plugging and cleaning up the disastrous oil leak in the Gulf of Mexico. Fitch estimates that costs could approach $3 billion this year. Other analysts say BP may have to shell out $40 billion over the long term. The credit downgrade is not just a blow to BP's prestige — it will also make it costlier for the company to borrow money.

Copyright © 2010 NPR. For personal, noncommercial use only. See Terms of Use. For other uses, prior permission required.

STEVE INSKEEP, host:

NPR's business news starts with more pain for BP.

(Soundbite of music)

INSKEEP: You would think that one of the few guaranteed investments in the 21st century would be in an energy company, but apparently not when the company is BP and a Gulf oil spill continues. Two of the leading credit-rating agencies have now downgraded BP. Fitch and Moody's cited the costs of plugging the disastrous leak in the Gulf of Mexico, as well as the cleanup. Fitch estimates the cost could approach $3 billion this year. Long term, other analysts say BP may have to shell out as much as $40 billion.

Copyright © 2010 NPR. All rights reserved. No quotes from the materials contained herein may be used in any media without attribution to NPR. This transcript is provided for personal, noncommercial use only, pursuant to our Terms of Use. Any other use requires NPR's prior permission. Visit our permissions page for further information.

NPR transcripts are created on a rush deadline by a contractor for NPR, and accuracy and availability may vary. This text may not be in its final form and may be updated or revised in the future. Please be aware that the authoritative record of NPR's programming is the audio.

Comments

 

Please keep your community civil. All comments must follow the NPR.org Community rules and terms of use, and will be moderated prior to posting. NPR reserves the right to use the comments we receive, in whole or in part, and to use the commenter's name and location, in any medium. See also the Terms of Use, Privacy Policy and Community FAQ.