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Transocean $9.1 Billion Debt May Be Cut to Junk on Oil Slump

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Transocean Ltd., the worst performer in the Standard & Poor’s 500 Index last year, may see its $9.1 billion debt lowered to junk status as the owner of the world’s largest fleet of offshore rigs contends with a “prolonged” downturn in the industry, Moody’s Investors Service said.

“The rapid drop in oil prices and the resulting deterioration of the market conditions for offshore drilling contractors has elevated the risk profile for the company,” Stuart Miller, vice president for Moody’s, said in a statement today. The ratings company has had a negative outlook on Transocean since May 2012.