S&P lowers Transocean to BBB-

Standard & Poor's said it lowered its ratings on Transocean Inc., including the long-term corporate credit rating, to BBB- from BBB. At the same time, S&P said it removed the ratings from CreditWatch, where they were placed with negative implications on Aug. 16.

The outlook is negative.

"The downgrade follows Transocean's announcement that it has completed the acquisition of Aker Drilling ASA," said S&P credit analyst Lawrence Wilkinson in a news release.

S&P said the funding of the $2.2 billion acquisition with a combination of cash and assumed debt will result in a weaker financial profile at a time of soft operating performance. In addition, the agency said the acquisition would likely delay the improvement of credit protection measures relative to what the agency had previously considered.

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