Oil spill firm’s captive lowered in line with BP’s downgrade
Standard & Poor's has lowered its long-term counterparty credit and insurer financial strength ratings on BP’s Guernsey-based captive Jupiter Insurance to 'AA-' from 'AA'.
It also put the captive insurer on CreditWatch with negative implications. The changes follow the same action on BP itself because of the Deepwater Horizon oil spill in the Gulf of Mexico.
“The rating actions reflect our view that BP continues to face operational challenges to stem and clean up the oil spill in the Gulf of Mexico,” S&P said.
“As Jupiter qualifies as a captive insurer under our rating criteria, we rate it at the same level as its parent. The ratings on Jupiter will therefore move in lock step with those on BP PLC.”
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