S&P: No change to BP

Standard & Poor's said its ratings and outlook on BP plc are unchanged following the announced provisional settlement of an estimated $7.8 billion to meet economic and medical claims arising from the Macondo well oil spill in the Gulf of Mexico.

The agency said it considers continued uncertainties arising from the actions of government bodies in response to the oil spill, such as the imposition of fines on BP, to be a critical risk factor for the ratings.

However, S&P said it sees this settlement as somewhat supportive for the ratings on BP and consistent with base-case assumptions. This is because the settlement addresses some material litigation and payment uncertainties, and because S&P understands that the plaintiffs cannot pursue further punitive damages against BP as a condition of the settlement, the agency said.

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