BP suffers in credit as default swaps soar

Embattled oil producer BP was as battered in the credit as it was in the equity markets. The price that investors pay to protect themselves against a potential default of BP rose to a level similar to those companies rated as "junk," said Markit, a credit data provider. Credit default swaps of BP soared by $195,000 (£133,000) – to protect each $10m of debt – to $570,000, a level similar to Greece just before the country admitted it might need a bailout. BP shares plunged to their lowest level in 13 years this morning, down 11% at 345p, on concerns about the future of the company following its oil spill in the Gulf of Mexico. By 11am they had recovered to 373p, cutting the fall for the day so far to just under 5%.