The ratings on U.K.-headquartered oil major BP PLC reflect Standard&Poor's Ratings Services' assessment of the group's "strong" business risk profile and "modest" financial risk profile. Our ratings take into account our view of the quality and diversity of BP's huge asset portfolio, its strong underlying profitability and cash generation, and the group's current focus on conservative balance sheet and treasury management. We see the group's exposure to exploration and production activities and refining risks, including volatility and capital intensity, as industry-wide constraints. In addition, we believe that BP is exposed to some concentrated country risks, as seen in the U.S. and Russia. Our ratings also reflect the uncertainties surrounding fines, penalties, and litigation relating to the oil spill
