Fitch affirms Transocean senior debt

Fitch Ratings said it has affirmed the BBB+ senior unsecured debt rating of Transocean Inc. The outlook for Transocean is stable.

Fitch said the rating is based on Transocean's ability to generate positive free cash flow, management's willingness to reduce debt and its strong offshore drilling fleet.

In the latest 12 months Transocean has generated about $600 million of positive free cash flow despite a weak drilling environment in the shallow Gulf of Mexico and in the North Sea. Contributing to Transocean's strong cash flow was mixed results from its fleet and relatively low capital expenditures.

Partially offsetting these segments has been the weaker conditions for its mid-water fleet of semi-submersibles and domestic shallow water assets.

Fitch said it expects Transocean's credit profile to improve in 2004 as the company continues to gradually pay down debt.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.