S&P lifts BP view to stable

Standard & Poor’s said it revised to stable from negative the outlook on BP plc

The agency also said it affirmed the A long-term and A-1 short-term corporate credit ratings on the group.

The company is expected to remain committed to continue divestment of non-core assets with $10 billion planned to be realized, S&P said.

BP also is lowering its capital expenditure and implementing a number of cost saving initiatives, which should support profitability in upstream and reduce losses at the corporate level, the agency said.

S&P said it further believes that the $18.7 billion settlement of federal, state and local claims related to the Deepwater Horizon accident meaningfully reduces the uncertainty related to the total amount of claims and has no negative impact on the ratings.

The stable outlook reflects a view that BP’s credit metrics through 2016 will be supported by its divestments and reduced capital expenditure, which should largely cover the negative discretionary cash flows forecasted, the agency said.

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