Transocean downgraded to junk at Fitch
Transocean (RIG -2%) loses its investment grade status at Fitch Ratings, which downgrades RIG’s long-term issuer default rating and senior unsecured ratings to BB+ from BBB-.Fitch says the downgrade reflects its view that the combined effects of weak oil prices and an offshore rig oversupply cycle brings higher revenue risk probably resulting in “leverage metrics exceeding Fitch’s through-the-cycle levels over the rating horizon."The ratings agency notes that iRIG has taken many actions to protect credit quality, and views the company as an eventual consolidator that will enhance its long-term competitive position and credit prospects.Earlier: Offshore drillers stung by Ocean Rig update
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