BP’s Debt Reduction Strengthens Dividend Profile as Business Transition Begins

Faced with low oil prices, a stretched balance sheet, and growing pressure to invest more in low-carbon energy, BP in August 2020 slashed its dividend by 50% and unveiled a business transformation plan. Following the dividend cut, we maintained BP's Unsafe Dividend Safety Score in recognition of the international oil major's still-elevated leverage and the challenging commodity price environment. [...]