Fitch Rates Transocean Inc.'s Senior Notes 'BBB-'

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CHICAGO--(BUSINESS WIRE)-- Fitch Ratings has assigned a 'BBB-' to Transocean Inc.'s (Transocean) senior unsecured note offering. The company will use the proceeds to help fund near-term refinancing and for general corporate purposes.

The company is issuing up to $2.5 billion in senior unsecured notes split among five year, 10 year and 30 year maturities. This offering follows the company's common equity offering of slightly over $1 billion announced yesterday. Both offerings will help to improve liquidity. Fitch estimates that most of the today's offering will be used for refinancing existing debt. Pro forma for the two offerings, the refinancing of the series B convertible notes and other expected refinancing, Fitch expects liquidity to approximate $5 billion consisting of roughly $3 billion in cash and equivalents along with the company's five year $2 billion revolving credit facility due 2016. Near-term maturities for 2012 and 2013 are approximately $1.6 billion and $750 million, respectively.

Fitch currently rates Transocean as follows:

Transocean Inc.

--Long-term Issuer Default Rating (IDR) 'BBB-' ;

--Senior unsecured notes 'BBB-';

--Senior unsecured bank facility due 2016 'BBB-';

--Short-term IDR 'F3';

--Commercial paper 'F3'.

The Rating Outlook remains Negative.

The ratings are supported by Transocean's fleet size and asset quality in the offshore drilling industry, the firm's revenue backlog with strong financial counterparties, and its moderately levered balance sheet. Transocean is the world's largest offshore drilling contractor and has a fleet of 134 offshore drilling units of which 48 are high-specification drillships and semisubmersibles.

The Negative Outlook primarily reflects the uncertainties surrounding Transocean's potential liability exposure related the Macondo incident and oil spill in the U.S. Gulf of Mexico last year. A sizable liability could potentially further pressure the existing ratings. Additionally, a sustained downturn in day rates and utilization rates could also further pressure the ratings.

Additional information is available at 'www.fitchratings.com'. The issuer did not participate in the rating process other than through the medium of its public disclosure.

The ratings above were unsolicited and have been provided by Fitch as a service to investors.

Applicable Criteria and Related Research:

--'Corporate Rating Methodology' (Aug. 12, 2011);

--'Short-Term Ratings Criteria for Non-Financial Corporates' (Aug. 12, 2011).

Applicable Criteria and Related Research:

Corporate Rating Methodology

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=647229

Short-Term Ratings Criteria for Non-Financial Corporate

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=647249

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE.

Fitch RatingsPrimary AnalystSean T. Sexton, CFA, +1-312-368-3130Managing DirectorFitch, Inc.70 W. Madison StreetChicago, IL 60602orSecondary AnalystMark C. Sadeghian, CFA, +1-312-368-2090Senior DirectororMedia Relations:Brian Bertsch, +1-212-908-0549Email: [email protected]

Source: Fitch Ratings

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