Moody's ups Transocean

Moody's Investors Service said it upgraded Transocean Inc.'s Baa2 senior unsecured debt rating to Baa1. The outlook is stable.

Moody's said the rating upgrade is based on a significantly improved financial leverage profile through debt reduction and divestitures and recent improvement in the company's financial results based on rising demand for its deepwater rigs and reduced exposure to the volatile shallow-water Gulf of Mexico market through the sale of its interest in its Todco affiliate.

The stable outlook assumes that Transocean will maintain conservative financial policies, including not undertaking material speculative new-builds, funding potential share buybacks out of free cash flow and maintaining a solid liquidity profile, the agency noted.

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