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"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," Moody's vice president Stuart Miller said on Tuesday, according to Bloomberg.
Moody's has held a negative outlook on Transcocean, which has the biggest offshore rig fleet in the world, since May 2012.
"During the next three years, the Vernier, Switzerland-based company has spending commitments to build rigs as the price for its equipment falls and existing contracts end," the newswire reported.
"A glut of new vessels is competing for less work as producers reduce spending amid collapsing oil and natural gas prices."
Transocean's New York-listed shares fell 2.3% to $US16.46 on Tuesday as Moody's views circulated.
