Moody's (NYSE:MCO) Downgrades BP (NYSE:BP)

Moody's (NYSE:MCO) has joined Fitch Ratings in downgrading BP (NYSE:BP), dropping their senior unsecured ratings one, from Aa1 to Aa2.

While these ratings remain good ratings, it's a precursor to what could come if BP isn't able to turn things around in the Gulf by stopping or slowing down the oil leak soon.

The move by Moody's was made because of that very thing, where the costs of cleaning up the Gulf and the unknown legal ramifications the company will experience had concerns over debt high, as well as the increasing possibility BP could ultimately default on the debt.

Moody's said there could be further downgrades in the near future if the circumstances don't change.