NEW YORK (TheStreet) -- Shares of BP (BP) are down 1.93% to $38.64 after the integrated oil and gas company said it should face a lower penalty for its 2010 oil spill in the Gulf of Mexico than the $16 billion-$18 billion sought by the U.S. government because of the slump in the price of crude since the summer, the Financial Times reports.
In a court filing, the British firm said imposing the maximum possible penalty, as the U.S. government has requested, would have a "very significant negative economic impact" on BPXP, its exploration and production subsidiary, which has legal responsibility for the spill, the Times noted.
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Separately, TheStreet Ratings team rates BP PLC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate BP PLC (BP) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins."