The ratings on BP PLC continue to reflect the company's excellent global oil and gas asset base, notably upstream, and its moderate financial profile and policies. Over the past two years, BP's traditionally strong operating performance has faltered on a series of operating issues affecting its core operations, especially in the U.S. These difficulties come close on the heels of setbacks in 2005. BP's earnings before interest, taxes, and nonrecurring items declined 11% year on year, to $29.6 billion in 2007 from $33.3 billion in 2006. The reasons behind BP's underperformance in 2007, despite a year of strong crude oil prices and top-of-the-cycle refining margins for competitors, include: Continued underperformance of the U.S. downstream business, including at the group's two
