Moody's rates Transocean notes B2

Moody's Investors Service said it assigned a B2 rating to Transocean Inc.'s planned $1.175 billion of senior secured notes due 2030. Concurrently, the agency boosted Transocean's probability of default rating to Caa1-PD from Caa2-PD, its priority guaranteed senior unsecured notes rating to Caa2 from Caa3 and its senior unsecured notes rating to Caa3 from Ca.

All other ratings, including the Caa1 corporate family rating were affirmed. The SGL-3 speculative grade liquidity rating is unchanged. The outlook was changed to positive from stable.

Transocean will use the proceeds to repay four secured note issues of wholly-owned subsidiaries of Transocean, including Transocean Guardian Ltd. and Transocean Pontus Ltd. The notes will be secured by a first lien on the three drillships and two semisubmersible rigs that back the four-note offerings being refinanced. Following the issuance of the proposed notes and repayment of the existing notes, Moody's will withdraw the ratings of Guardian and Pontus.

The improved outlook reflects Transocean's enhanced liquidity and substantially improved 2023 and 2024 debt maturity profile, along with the ongoing recovery in the offshore drilling market that should keep pushing stronger dayrates and utilization, the agency said.

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