Energy Giant BP PLC Outlook Revised To Positive; 'A-' Rating Affirmed

BP's operating performance continues to be robust, allowing the company to absorb the impact of the BHP acquisition without material deterioration in credit metrics. We believe that the management's commitment to reduce debt, coupled with supportive industry conditions, could allow BP to improve its credit metrics from the third quarter of 2019, unlocking the potential for a higher rating. We are therefore revising our outlook on BP to positive from stable and affirming the 'A-' rating. The outlook is positive because we recognize the likelihood that BP's metrics will improve in the next 12-24 months with funds from operations (FFO) to debt rising to sustainably above 40%. MOSCOW (S&P Global Ratings) July 12, 2019--S&P Global Ratings today took the rating

...July 12, 2019 - BP's operating performance continues to be robust, allowing the company to absorb the impact of the BHP acquisition without material deterioration in credit metrics. - We believe that the management's commitment to reduce debt, coupled with supportive industry conditions, could allow BP to improve its credit metrics from the third quarter of 2019, unlocking the potential for a higher rating. - We are therefore revising our outlook on BP to positive from stable and affirming the 'A-' rating. - The outlook is positive because we recognize the likelihood that BP's metrics will improve in the next 12-24 months with funds from operations (FFO) to debt rising to sustainably above 40%. MOSCOW (S&P Global Ratings) July 12, 2019--S&P Global Ratings today took the rating actions listed above. We revised the outlook on BP to positive because we believe that BP's management will increasing focus on reduction of absolute debt, which should support stronger credit metrics over the next...

Ratings Action