Fitch places Transocean on negative watch

Fitch Ratings said it placed Transocean, Inc.'s ratings on rating watch negative due to comments made by management on the company's quarterly conference call.

Fitch said it believes that management and the board will ultimately act in a prudent manner consistent with the company's current ratings, but comments made on the call are inconsistent with past behaviors and public comments.

During Transocean's first-quarter earnings conference call, the company indicated it is exploring all opportunities for returning cash to shareholders. Management indicated these options could include initiating a regular quarterly dividend, a one-time special dividend, a larger share repurchase program or an accelerated share repurchase program, which could include borrowings.

Fitch said it believes this issue will be resolved within the next one to two weeks after the company's next board meeting when a decision is made regarding how to best return cash to shareholders.

Fitch currently rates Transocean's issuer default rating at A-, its senior unsecured at A- and its senior unsecured bank facility at A-.

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