NEW YORK (TheStreet) -- Credit rating agency Fitch cut its rating of BP (BP) - Get Report by six notches to triple-B from double-A Tuesday, citing much larger estimates for the severity of the Gulf of Mexico oil spill and demands from lawmakers to set aside $20 billion for an escrow account to compensate for economic and environmental damages.
According to Fitch, the larger estimates for the spill "will materially increase BP's exposure to Justice Department fines payable in the near to medium-term."
Still, BP is still at an investment-grade level, despite being just two notches above junk status now.
The market is punishing BP a bit after the downgrade, with BP ADRs falling 1.3% to $30.28 in premarket trading Tuesday.
Oil Spill Update: Obama Wants Billions
-- Reported by Andrea Tse in New York
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