Negative Fitch Ratings

On Tuesday, the Fitch ratings outlook had changed to negative on the Anadarko Petroleum Corp from being stable. This fall cited the increasing number of the estimates the company’s damage that is was going to have to pay because of the oil spill incident at the Gulf of Mexico.

The negative outlook indicates that the company might have to cut down from its already embarrassing lowest investment grade of BBB-minus over the next year or Two. the Company’s borrowing costs would also increase due to the downgrades into the territory of junk.

25% of the oil well that exploded into the Gulf of Mexico is owned by Anadarko, which caused a huge spill the largest owner, BP Plc couldn’t stop.

"Fitch believes that Anadarko will not have to pay punitive damages since it is a non-operating partner; however, it may have to pay its 25 percent share of containment and cleanup costs as well as compensatory economic damages depending on a number of factors," the rating agency said.

As payments have to be funded, Anadarko is expected to have enough liquidity in order to compensate for the spill. This, analysts say would loot the company of $6 billion. The punitive damages could cost BP $40 billion. Fitch also revised on Tuesday, its Transocean limited outlook making it negative as the costs still worried him. He was also concerned about the markets for deepwater drilling could become weaker.