MARKET TALK: BP CDS Tighter After Latest Downgrade

1252 GMT [Dow Jones] BP's CDS level remain tighter than Thursday's close after Moody's downgraded BP's credit rating. BP's CDS level sat at 458 BP, according to Markit after closing at 470 BP Thursday. BP's CDS levels have moved erratically in recent days, narrowing 144BP yesterday after closing Wednesday at 614BP. Moody's lowered its rating on BP this morning by three notches, to A2 from Aa2, the third ratings cut of the week for the oil giant. Moody's said mounting cost pressures and exposure to litigation stemming from the oil spill in the Gulf of Mexico led to the downgrade. S&P lowered its rating of BP by two notches Thursday, its second downgrade this month. Fitch downgraded BP's credit six notches Tuesday, leaving its rating precariously close to junk status. (christopher.dieterich@dowjones.com) Contact us in New York. Darlene Ross, 212 416-2166; darlene.ross@dowjones.com (END) Dow Jones Newswires June 18, 2010 09:00 ET (13:00 GMT)