...Softening Offshore Market: Near-term offshore demand has moderated, and new builds equal to roughly one-third of the working global rig fleet are scheduled to be delivered through year-end 2018. Fitch Ratings believes utilization and day rates for existing, lower-specification rigs will remain under pressure. Further, the rate of absorption could heighten downmarket competition, leading to some lower-specification rig displacement and, potentially, stacking and/or attrition. Transocean Partners Adds Flexibility: Fitch believes the affiliated Transocean Partners LLC (NYSE: RIGP) will provide Transocean Inc. with additional financial flexibility. Dropdowns will improve liquidity to pay down corporate debt and fund its fleet-renewal program. Meanwhile, Transocean's ownership of RIGP units and retained direct interest in the initial RigCos will provide additional ongoing cash flows. Nevertheless, Fitch recognizes the establishment of RIGP introduces the risk of corporate asset quality dilution...
