Fitch revises BP outlook to positive

Fitch Ratings said it revised the outlook on BP plc to positive from stable and affirmed the issuer default rating at A and the A ratings on the debt issued by its subsidiaries.

“The positive outlook reflects significant debt reduction in 2022 and our expectation that BP will ultimately move to a more conservative financial profile with net debt in the range of $20 billion-$25 billion from 2023. We forecast funds from operations (FFO) net leverage of 0.7x in 2022 rising to around 1x by 2024 based on our oil and gas price assumptions. This is well below our positive sensitivity of 1.8x and positions the company favorably compared with similar or higher-rated peers,” Fitch said in a press release.

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