Transocean cut two notches at Fitch with negative outlook
May 13 2016, 18:31 ET | About:
Transocean Ltd. (RIG) | By:
Carl Surran, SA News Editor
Transocean's (NYSE:
RIG) credit rating is
downgraded by two notches to B+ from BB with a negative outlook at Fitch Ratings, reflecting lower than previously expected E&P capital spending and offshore rig tendering activity.
Fitch acknowledges RIG's actions to manage its credit profile such as the early retirement of debt, eliminating the dividend, deferring uncontracted newbuild deliveries and cutting operating costs, but says declining cash flow and evolving asset profiles remain credit concerns.
The ratings agency sees the potential for a deeper and longer than previously forecast offshore drilling downcycle, and expects dayrates will remain challenged and range bound.
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