The price of BP (NYSE:BP) bonds has plunged, an event that markets believe is the prelude to the company possibly defaulting on its debt obligations.
It seems what was propping the bonds up was the hopes the "top kill" effort to plug the oil leak would succeed, since that failed, the bottom has fallen out of the price of BP's bonds.
Consequently, Fitch cut the rating of BP from AA+ to AA. Even so AA is still a top rating, but it gives us a look at what the near future will bring if costs of attempting to stop the flow of oil continues to rise.
That's why Fitch Ratings said there could be further downgrades if costs associated with the oil leak aren't abated.
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