Fitch lifts Transocean view to positive

Fitch Ratings said it revised the outlook on Transocean Inc. to positive from stable and affirmed the company's issuer default rating, senior unsecured debt and senior unsecured bank facility at BBB and its short-term issuer default rating and commercial paper at F2. GlobalSantaFe Corp.'s issuer default rating and senior unsecured debt were also affirmed at BBB.

The agency said the positive outlook reflects the continued improvements the company has made in reducing debt levels following the 2007 merger and recapitalization with GlobalSantaFe.

Transocean's ratings continue to reflect the company's sizable fleet of offshore drilling rigs, large contract revenue backlog, robust free cash flow, significant liquidity and the continued improvements to its credit metrics following the 2007 merger with GlobalSantaFe, Fitch said.

Market conditions for offshore drillers are expected to remain weaker than recent peak levels, but the agency said previously signed contracts combined with Transocean's significant exposure to the deepwater market are expected to significantly mitigate the impact of declining market conditions.

The debt-to-EBITDA ratio was 2 times as of Dec. 31.

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