Fitch revises Transocean view to negative

Fitch Ratings said it affirmed Transocean Inc. and its affiliate's long-term issuer default rating and senior unsecured ratings at BBB-.

The outlook was revised to negative from stable.

Fitch said the negative outlook reflects the possibility that a prolonged oil price drop will compound the effects of the offshore rig oversupply cycle resulting in weaker than previously expected market dayrates and an acceleration of the fleet rationalization process.

The outlook also considers the prospect that Fitch's inflection point estimate could be pushed back beyond 2016 and dayrate improvement expectations moderated resulting in a weaker leverage profile, the agency said.

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