Integrated Energy Company BP PLC 'A-/A-2' Ratings Affirmed On Announced Exit From Rosneft; Outlook Remains Stable

BP PLC has announced its intention to exit its material (19.75%) stake in Russian-controlled Rosneft Oil Co. PJSC due to the invasion of Ukraine; this will translate to a significant change in the group's asset mix but not its cash flows. As a result, we affirmed our 'A-' long-term and 'A-2' short-term issuer credit ratings on BP. The outlook remains stable and reflects our assumption that prevailing high oil and gas prices will let BP strengthen its financial resilience more rapidly than it could have otherwise, with funds from operations (FFO) to debt of close to 45% in 2022 and 2023. NEW YORK (S&P Global Ratings) March 2, 2022--S&P Global Ratings today took the rating actions listed above. The stable

...March 2, 2022 - BP PLC has announced its intention to exit its material (19.75%) stake in Russian-controlled Rosneft Oil Co. PJSC due to the invasion of Ukraine; this will translate to a significant change in the group's asset mix but not its cash flows. - As a result, we affirmed our 'A-' long-term and 'A-2' short-term issuer credit ratings on BP. - The outlook remains stable and reflects our assumption that prevailing high oil and gas prices will let BP strengthen its financial resilience more rapidly than it could have otherwise, with funds from operations (FFO) to debt of close to 45% in 2022 and 2023. NEW YORK (S&P Global Ratings) March 2, 2022--S&P Global Ratings today took the rating actions listed above. BP's operating performance and cash generation will likely remain strong across the group. High oil and gas prices are bolstering BP's (and sector peers') cash generation. Demand and prices have rebounded strongly since the COVID-19-related lockdowns. Moreover, prices are now reflecting...

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