BP: S&P downgrades outlook to 'stable'

(CercleFinance.com) - S&P Global Ratings on Wednesday revised its outlook on BP from "positive" to "stable" as it thinks that market conditions and credit metrics currently make an upgrade unlikely in the next year.


The move comes as oil prices and refining margins are testing multi-decade lows due to the combined effects of COVID-19 outbreak and the price war between Saudi Arabia and Russia.

S&P, however, believes that the potential of a downgrade by one notch into the 'BBB' category could provide BP with a "strong incentive" to bolster its balance sheet.

The agency has confirmed its "A-" long-term and "A-2" short-term credit ratings on the British oil major.

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