BP bonds slide as Fitch slashes rating from AA to BBB

BP bonds have plunged today after the Fitch ratings agency cut its credit rating a full six notches from AA to BBB.

The ratings agency says the balance between long-term and near-term costs for BP from the Gulf of Mexico disaster may now be much more heavily skewed towards the near-term than it had previously anticipated. BP's 4% 2014 bond has fallen from 95.94 at last close to 94.98 currently. The spread of BP over gilts now sits at 300 basis points, well over the 50bp before the crisis. Fitch also set its rating watch on BP to ‘evolving' from negative, as the credit risks from the spill remain unclear. It also says it "would be surprised" if BP did not suspend quarterly cash dividend payments ...