MARKET TALK: BP's CDS Weakens On Fitch Downgrade

15th Jun 2010 13:47

1243 GMT [Dow Jones] BP's credit default swaps are trading wider after Fitch downgraded the company's long-term credit to BBB from AA. BP's CDS are trading at 470 BP, according to Markit, after closing at 424 BP Monday and 394 BP Friday. Fitch's move marks the steepest downgrade for a AA-rated company in recent memory, according to Guy LaBas at Janney Capital Markets. Fitch cited growing estimates of the spill's size and a "significant step-up in action from the U.S. government" to extract the clean-up costs from the company, according to a press release. ([email protected]) Contact us in New York. Darlene Ross, 212 416-2166; [email protected] (END) Dow Jones Newswires June 15, 2010 08:47 ET (12:47 GMT)