Moody’s (NYSE:MCO) downgraded the debt of Anadarko (NYSE:APC) Friday, based on concerns over their liability as 25 percent owner of the well, and what is going to happen once the attention shifts to other parties connected to the disaster.
The long-term debt of the company, along with its guaranteed subsidiaries was dropped from Baa3 to Ba1. The long-term ratings will remain under review by Moody's, which means there could be further downgrades in the future.
Also downgraded was the Corporate Family Rating of the oil giant, dropping to Ba1.
“The action taken today by Moody’s is very disappointing and surprising in light of Anadarko’s limited role as a non-operating investor in the Macondo well. Although we understand the concern over uncertainty surrounding the current situation, we believe it is too early in the process for Moody’s to take this action. Further, our significant concerns about the behavior and actions of BP as operator of Macondo were highlighted by our Chairman and CEO in a statement issued earlier today,” said Anadarko Sr. Vice President, Finance and CFO Robert Gwin. “We believe our liquidity position, asset portfolio, and continued strong operating and financial performance provide us with the flexibility to take action based on the facts as they develop. We will take whatever steps are appropriate to protect our stakeholders and will work diligently to regain our investment grade status with Moody’s.”
Anadarko Chairman and Chief Executive Officer Jim Hackett said in a statment Friday that "The mounting evidence clearly demonstrates that this tragedy was preventable and the direct result of BP's reckless decisions and actions."
This seems to indicate growing concern Anadarko could be held to some significant liability, and the communication by Hackett was one attempt to lower that idea in the minds of those who will make those decisions.
BP has also said they expect "contributions" from their partners concerning claims coming in against them, and that could also be part of Hackett blasting the company.
The action by Moody's implies they don't think Anadarko is not going to get away with not paying something significant as a result of the oil spill.
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