Standard&Poor's Ratings Services said today that its ratings on BP PLC (AA+/Stable/A-1+) remain unchanged after publication of the London-based oil supermajor's third-quarter results. BP's revision of 2002 hydrocarbon production growth to 3% (from 5% earlier in the year) will make it harder for the company to achieve its 2000-2005 average target of 5.5%, which--while no cause for concern on BP's rating--is somewhat disappointing in light of full-year capital spending that is expected to reach the upper end of the targeted range, at $13 billion. Gearing levels (25%-35% company policy, versus 29% at Sept. 30, 2002) should remain stable through year-end and are in line with Standard&Poor's expectations on BP's normalized credit measures. Financial flexibility is only
