Fitch upgrades BP’s rating outlook to positive



12/16/2022 10:39 AM


According to a press release from the international rating agency Fitch Ratings, the outlook on the rating of UK oil major BP plc has been changed from stable to positive.



Mike Mozart via flickr
The company's short-term rating was raised from "F1" to "F1+," but the long-term Issuer Default Rating (IDR) was maintained at "A."

The optimistic view, according to Fitch analysts, "reflects a considerable reduction in debt in 2022 and the expectation that BP will gradually shift to a more conservative financial profile with net debt in the $20-25 billion range beginning in 2023."

According to the agency, Fitch's adjusted net debt at the end of 2022 will be $37 billion as opposed to $44 billion at the end of 2021. Analysts forecast that in 2023, net debt would reach $25 billion, although the exact amount will depend on how management allocates surplus cash flows.

source: fitchratings.com

 


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