Moody's upgrades BP

Moody's Ratings said it upgraded BP plc’s long-term issuer rating to A1 from A2. Concurrently, Moody's has also acted on the ratings and instrument ratings of BP's guaranteed subsidiaries and instruments. The outlook for BP and its subsidiaries that carry an outlook has been changed to stable from positive.

"The upgrade reflects Moody's expectations that BP's credit metrics should remain commensurate with an A1 rating throughout a reasonable range of market environments. BP's balance sheet remains stronger after a fast post-pandemic debt reduction and supported by moderate base dividend and disciplined investments, notwithstanding currently high levels of share buybacks," said Tobias Wagner, a Moody's vice president, senior credit officer at Moody's and lead analyst for BP, in a press release.

The agency said it expects BP's Moody's-adjusted retained cash flow to net debt ratio to remain at or above 30% throughout a range of reasonable market environments. For 2023, the ratio stood at 56%, and Moody's forecasts it to hover around 40% for 2024 assuming a $70 oil price scenario.

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