The company has been downgraded by Fitch and is just a rung or two above junk status.
BP at one time paid a dividend in excess of 6% and was regarded as a stable investment. One would suspect that many retirement accounts of all types include serious positions in BP. The point is that it is not only the Gulf and the Gulf lifestyle that is losing out on the leak. One would suspect many retirees that live on dividends are somewhat in a pinch over the proposed cancellation of BP's dividend. Probably thousands of people in this and many countries are losing some investments with the downgrade. Its a complex web out there.
Bloomberg: BP’s Rating Cut by Fitch to Two Levels Above ‘Junk’
President Barack Obama and U.S. lawmakers said this week that BP should suspend dividends and set aside funds now for legal claims against the company from the spill, the worst in U.S. history. Fitch said it would be “surprised” if BP didn’t suspend the quarterly payout until the full costs are known. The cost of cleanup and liabilities may reach $40 billion, Standard Chartered Plc. estimated last week.
3 comments:
Who cares? They took they're chances with this company tough. Or maybe we should bail them out?
I'm not into bail outs.
I just imagine the old person in their 80's and such who has pretty much paid their dues as it were, and now they are facing economic challenges again.
Bp is at the center of this mess but its really a much larger system that paved the way for this thing. Lax regulations, inexcusably poor or meaningless oversight, probably political kick backs of all types, and then the whole idea of doing this deeper water drilling with no emergency contingency its an utter clusterf###. Finding someone to blame for this thing is like trying to throw a basketball in the ocean, you can't miss.
This is the result of systemic rot. You've had a regime world-wide that no longer believes in regulation and several generations of pols that don't either. So with the Foxes watching the hen houses whose surprised? Imagine now for a moment that Obama is calling for the building of scores of new Nukes no less.
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