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Credit Rating Agencies Downgrade BP
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Credit Rating Agencies Downgrade BP

Business

Credit Rating Agencies Downgrade BP

Credit Rating Agencies Downgrade BP
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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.

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.

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