Moody's rates Transocean notes B1

Moody's Investors Service said it assigned a B1 rating to Transocean Poseidon Ltd.'s proposed $550 million senior secured notes due 2027.

Transocean Poseidon is a wholly owned indirect subsidiary of Transocean, Inc.

The proceeds will be used to partially finance the construction of the ultra-deepwater rig Deepwater Poseidon and to fund a debt service reserve account, Moody's said.

The agency said it downgraded the ratings of Transocean $1.25 billion senior unsecured notes due 2023, $750 million senior unsecured notes due 2025 and $750 million senior unsecured notes due 2026 to Caa1 from B3.

These three unsecured notes are guaranteed by certain Transocean subsidiaries and by Transocean's parent, Transocean Ltd., the agency said.

Moody's also said it affirmed Transocean's B3 corporate family rating, B3-PD probability of default rating and Caa2 senior unsecured notes rating.

Moody's also affirmed the B1 rating on Transocean Guardian Ltd.'s 2024 notes and Transocean Pontus Ltd.'s 2025 notes.

Moody's also said it affirmed Transocean's SGL-1 speculative grade liquidity rating.

The outlook remains negative. Although there are very modest signs of recovery in the offshore drilling sector, the commodity price volatility presents a head wind for renewed offshore activity and limits Transocean's ability to reduce its debt burden sufficiently to m

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.