The collateral requirements imposed on BP by trading partners have risen since the April 20 Gulf spill, according to people familiar with the matter, in part because of ratings downgrades.
At Credit Suisse, for instance, the threshold above which BP must post collateral for trades is now $10 million, down from $30 million prior to the spill, one of these people says.
Counterparties want to see that BP is good for their trades. They might want letters of credit or they may want assets, like Rosneft—a Russian oil company that BP owns a stake in.
Related BP Links:
- BP Loses Trading-Floor Swagger in Energy Markets
- BP Bond Offering Hits a Snag
- BP $5 Billion Debt Offering May Yield up to 10%