BP (BP)

Liquidity Risk

        Liquidity risk is the risk that suitable sources of funding for the Group's business activities may not be available. The Group has long-term debt ratings of Aa1 and AA+ assigned respectively by Moody's and Standard & Poor's.

        The Group has access to a wide range of funding at competitive rates through the capital markets and banks. It co-ordinates relationships with banks, borrowing requirements, foreign exchange requirements and cash management centrally. The Group believes it has access to sufficient funding, including through the commercial paper markets, and also has undrawn committed borrowing facilities to meet currently foreseeable borrowing requirements. At December 31, 2004, the Group had substantial amounts of undrawn borrowing facilities available, including committed facilities of $4,500 million expiring in 2005 ($3,700 million expiring in 2004). These facilities are with a number of international banks and borrowings under them would be at pre-agreed rates. The Group expects to renew the facilities on an annual basis. Certain of these facilities support the Group's commercial paper programme.

Liquidity Risk

        Liquidity risk is the risk that suitable sources of funding for the Group's business activities may not be available. The Group has long-term debt ratings of Aa1 and AA+ assigned respectively by Moody's and Standard & Poor's.

        The Group has access to a wide range of funding at competitive rates through the capital markets and banks. It co-ordinates relationships with banks, borrowing requirements, foreign exchange requirements and cash management centrally. The Group believes it has access to sufficient funding, including through the commercial paper markets, and also has undrawn committed borrowing facilities to meet currently foreseeable borrowing requirements. At December 31, 2004, the Group had substantial amounts of undrawn borrowing facilities available, including committed facilities of $4,500 million expiring in 2005 ($3,700 million expiring in 2004). These facilities are with a number of international banks and borrowings under them would be at pre-agreed rates. The Group expects to renew the facilities on an annual basis. Certain of these facilities support the Group's commercial paper programme.