Fitch Ratings, which downgraded BP by six notches - from AA to BBB today, said while there could be more downgrades and further financial pressures on the company, they don't expect the company to have to go into bankruptcy protection.
Some of the concerns of Fitch are financial claims growing much larger than they are now, pressure to pay out much quicker than the oil giant has been, and their access to capital in that environment.
Now that the company has been downgraded to BBB, cost of debt will rise, and it'll be harder to get the capital needed to continue operations and pay out liabilities.
This is the problem with Obama's rhetoric, which while pandering to his base, also creates the type of atmosphere which demands things to be done immediately, even though it does more harm than good in the long term.
4 comments:
Tell the long term benefits to the people who can't pay their mortgages TODAY in those states...
And tell that to the fishermen struggling before who are now paid by BP for one day what they made in a month fishing. I assume they have no problems paying their mortgage
"This is the problem with Obama's rhetoric?"
Oh, come on. I'm pretty sure the problem is an oil spill.
Its not a "state" problem - your whole country is in a worse state than Greece
http://www.usdebtclock.org/
Obummer has sold you out, but of course blame BP, or is it still Bush's fault?
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