Friday, June 18, 2010

Moody's (NYSE:MCO) Slashes BP (NYSE:BP) Debt Ratings

Moody's (NYSE:MCO) follows other ratings agencies in downgrading the debt of BP (NYSE:BP), cutting several of its credit ratings today.

The long-term debt rating of BP was cut from A2 to Aa2, their BP North America unsecured issuer rating dropped from Aa3 to Baa1, and for their BP Finance PLC unit, their senior unsecured issuer rating was slashed from Aa3 to A3.

Fitch Ratings and Standard & Poors recently downgraded the debt of BP as well.

The reasons for the cuts were solely on the uncertainty related to the Deepwater Horizon explosion which released the oil into the Gulf of Mexico.

BP's American Depository Receipts or ADR has fallen by 47.7 percent since the accident on April 20.

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