BP Shares Move Up Despite A Severe Cut In Rating By Fitch

BP plc (NYSE: BP) shares are gaining in the pre-market, despite a shocking six notches cut in the company’s credit rating by Fitch.

Fitch’s cut was prompted by its concerns over costs, as BP is being pushed by lawmakers to create an escrow account amount to $20 billion to cover costs related to the oil spill in the Gulf. According to Fitch, “The scale of today's rating action has been partly driven by the increased risk that the balance between long-term and near-term cost payments may now be skewed much more heavily towards the near-term than previously anticipated.”

"Fitch would be surprised if BP did not suspend quarterly cash dividend payments until the operational and financial impact of the incident is clearer," the credit rating agency said.

BP’s shares moved up 1.37% to $31.04 in the pre-market session.

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