S&P affirms Transocean, lowers outlook to negative

Standard & Poor's said it affirmed its A- corporate credit rating on Transocean Inc. and revised its outlook on the company to negative from stable.

The agency said that the rating action follows the company's announcement that it will raise an additional $2 billion in short-term debt.

S&P noted that the ratings on Transocean reflect a strong business risk profile that is supported by a large, diversified fleet of mobile offshore drilling units, a broad geographic scope of operations and a track record of solid free cash flow generation through the volatile marine contract drilling cycle.

The ratings also incorporate the company's participation in a highly cyclical, competitive and capital-intensive industry, as well as a growing backlog of contracted revenues for its offshore drilling units, the agency said.

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