BP’s Credit Rating Cut By Fitch To BBB, Two Levels Above ‘Junk’

June 15 (Bloomberg) -- BP Plc’s credit rating was cut to two levels above “junk” at Fitch Ratings on concern over the potential cost of cleaning up the Gulf of Mexico oil spill and meeting future liabilities.

BP’s long-term issuer default and senior unsecured ratings were lowered six levels to BBB from AA, Fitch said in a statement in London today. That follows a cut from AA+ on June 3. The rating watch was changed to “Evolving” from “Negative.”

“The recent claims by U.S. state and federal authorities that BP escrow significant sums preemptively, ahead of any agreed claims process, represent a material change in approach,” Fitch said in the statement.

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