BP one year on: Moody's warns spill bill could hit $60bn

The final cost to BP from the Gulf of Mexico oil spill disaster could reach $60bn (£37bn), according to fresh analysis from ratings agency Moody's.

BP is budgeting for maximum final costs of $41bn to settle fines, compensation and clean-up operations, based on the assumption it will not be found guilty of any allegations of gross negligence.

However, estimates from Moody's say the figure could be much higher, with BP's cost estimate at the bottom end of expectations, reports The Telegraph.

"We still do not know the total cost and penalties from the spill, but our analysis suggested the figure would be roughly $40bn-$60bn," Moody's analysts said.

It is now a year to the day since the Deepwater Horizon rig exploded and sank, killing 11 men.

Moody's points out it will take until late 2012 to get any legal outcomes that determine the size of fines for BP.

The rating agency believes BP can still afford to pay liabilities of $60bn, based on the fact it has more than $30bn of free cash flow and is disposing of $30bn in assets.