U.K.-headquartered oil major BP is contending with operational challenges to stem and clean up the oil spill in Gulf of Mexico. The company faces increased uncertainly over potential longer term remedial costs relating to environmental damage. We are revising the outlook on BP to negative from stable and affirming the 'AA' long-term and 'A-1+' short-term corporate credit ratings. The outlook reflects potential pressure on BP's financial flexibility, which is already limited at the rating level, in our view. (Watch the related CreditMatters TV segment titled, "BP PLC: Why S&P Revised Its Outlook And Affirmed The Rating," dated May 21, 2010.) On May 7, 2010, Standard&Poor's Ratings Services revised the outlook on U.K.-headquartered oil major BP PLC to negative
