The cost of insuring BP's (NYSE:BP) debt has risen again, as credit default swaps rose to 620 basis points, up from yesterday's close of 495 basis points.
That brings the cost of insuring their debt to $620,000 for each $10 million insured over a five-year period. Just on Monday it stood at $424,000 for each $10 million insured.
This is the highest levels BP has ever reached in insuring its debt levels, and comes on the heals of ongoing pressure to create a huge escrow account to pay out claims from, and being turned on by those in their own industry, all of which points to more potential financial liability in the situation.
Fitch Ratings also downgraded the company by six notches on Tuesday, dropping them from AA to BBB, not far above junk status.
5 comments:
This criminal company floundered many democracies including that of Iran in 1953 for plundering its oil. It fully deserves to be floundered. US should impound its entire assets for bringing black death to its coasts.
and I suppose you will be still singing the same tune when your fuel hits over $11 a gallon will you?
thought not...
It wasn't a BP accident. The accident occurred and the 11 poor souls lost their lives while Transocean were working on the well.
BP own 65% of the well.
Althought BP & the other partners are responsible for the for the oil spill, they did not cause the spill. They are responsible because it's their oil that is being spilt. BP have consistently said from the outset that they are responsible for the clean up of the Transocean spill and will foot the bill.
The "Swiss" drilling company, Transocean was formed after many take-overs, amalgamations and name changes of the following companies over many years.
Southern Natural Gas Company, Alabama
The Offshore Company, Alabama
DeLong-McDermott, Texas
J. Ray McDermott, Texas
Sonat Offshore Drilling , Alabama
Schlumberger, originally France & Texas
Southeast Drilling Company (Sedco) , Texas
Forex, France
Reading & Bates Falcon, Texas
Global Marine
Transocean, Norway
Santa Fe Drilling, Texas
Union Oil Company of California
Transocean moved corporate HQ from Houston to Switzerland a couple of years ago. Transocean also have offices in the Cayman Islands as well as many operations offices around the world..
BP merged with Amoco, the American Oil Company, and others over they years.
How is it we blame a head quarters in London for the actions taken by a bunch of Americans? If you have every working in the offshore business in the Gulf, you will know that every senior position on these drilling rigs are Americans. Americans are running the show out there and do not take kindly to any outside input. Even from their own company. The culture out there are nothing but American Cowboys...
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