MARKET TALK: Bank Casts Wary Eye On BP's Creditworthiness

28th Jun 2010 18:37

1:37 (Dow Jones) If BP's thinking of doing any deals with financing from Credit Suisse, it now has to reckon with a lower threshold for posting collateral. CS has lowered deal-valuation threshold to $10M from the $30M that applied before the Gulf oil spill, CNBC's Kate Kelly reports. The lower limit's already factored in a deal -- reported Friday on WSJ.com -- in which CS in the preceding week lent BP money backed by its equity stake in Russian producer Rosneft (ROSN.RS). Kelly says the loan was for as much as $2B and is an example of counterparties' desire to see rating-downgraded BP show it can make good on trades, such as by providing letters of credit. ([email protected]) Call us at (212) 416-2181 or email [email protected] Visit the Market Talk blog at www.djnmarkettalk.com. (END) Dow Jones Newswires June 28, 2010 13:37 ET (17:37 GMT)