MARKET TALK: CDS On Anadarko Widen On Sparring, Downgrade

21st Jun 2010 14:27

1326 GMT [Dow Jones] Credit default swaps on Anadarko Petroleum (APC) have widened to 4 points upfront from 3 points at Friday's close, according to Markit, after the company publicly criticized BP (BP.LN), its partner in the leaking Gulf of Mexico oil well, of "gross negligence or willful misconduct" and saw its long-term debt rating from Moody's cut to Ba1 from Baa3--junk territory. That means it would cost a buyer of protection $500,000 per year over five years to insure $10 million of debt, plus a one-time upfront payment of $400,000--$100,000 more than it did Friday. Moody's cited Anadarko's 25% non-operating stake in the well and therefore its potential share in the huge clean-up costs and potential fines. ([email protected]) Contact us in New York. Darlene Ross, 212 416-2166; [email protected] (END) Dow Jones Newswires June 21, 2010 09:27 ET (13:27 GMT)