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Moody's upgrades Diamond Offshore's (DO) corporate credit rating to A3 from Baa1, citing the...

Moody's upgrades Diamond Offshore's (DO) corporate credit rating to A3 from Baa1, citing the contract driller's lower debt levels relative to its industry peers and its strong market position with a large offshore drilling fleet. The ratings firm says DO will have a competitive ultradeepwater and deepwater drilling rig fleet upon completion of its new drill ships.
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Comments (3)
  • saratogahawk
    , contributor
    Comments (2514) | Send Message
    So lets see. DO has no drill ships and doesn't have any coming until 2013 and 2014 at the earliet. Those are under weak contracts with poor day rates. The rest of its fleet leans heavy to semisubs and jackups so shallower waters is its meat and potatoes. Hard to see how any of that changes its ratings outlook right now. Maybe next year I would agree but what drive this upgrade today? Virtually everyone agrees that the strongest drilling fleets are those with the higher numbers of deepwater, ultradeep water and harsh environment rigs. Shallow water standard jackups and standard semisubs are not getting the biggest bumps upwards in day rates. Hard to understand Moody's thinking.
    28 Jun 2012, 03:25 PM Reply Like
  • Jeremy Johnson, CFA
    , contributor
    Comments (790) | Send Message
    They have one drill ship in operation.
    28 Jun 2012, 06:06 PM Reply Like
  • saratogahawk
    , contributor
    Comments (2514) | Send Message
    Yes, the Ocean Clipper. sorry for the error.
    28 Jun 2012, 06:38 PM Reply Like
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