S and P lowers BP long-term rating from AA to AA-

Standard and Poor’s lowered British oil giant BP’s long-term rating from AA to AA- on Friday, the latest downgrade over the Gulf of Mexico oil disaster.

“The downgrade reflects our opinion on the significant operational challenges (BP) continues to face to stem or contain the leak from one of its wells in the Gulf of Mexico,” said S and P credit analyst Simon Redmond.

The agency, following downgrades by Fitch and Moody’s Investor Service on Thursday, added that “prolongation of the spill raises the likely range of longer-term remedial costs and compensation claims” the firm could face.