U.K.-headquartered oil major BP continues to face operational challenges to stem and clean up the oil spill in the Gulf of Mexico. Prolongation of the spill raises the likely range of longer-term remedial costs and compensation claims relating to environmental damage. We are lowering our long-term rating on BP to 'AA-' from 'AA' and placing our long- and short-term corporate credit ratings on CreditWatch negative. The CreditWatch placement reflects our intention to reassess the longer-term impact on BP's business and financial risk profiles. On June 4, 2010, Standard&Poor's Ratings Services lowered its long-term corporate credit rating on BP PLC to 'AA-' from 'AA'. At the same time, we placed both the long- and short-term rating on CreditWatch with
