New York, November 16, 2012 -- Moody's believes that the credit rating and outlook for Transocean Inc. (Baa3 negative) is unaffacted by BP plc's (BP) (A2 stable) $4.5 billion settlement with the US government for all criminal and securities claims associated with the Macondo accident.

RATINGS RATIONALE

The BP settlement amount is of a magnitude that is compatible with Transocean's$6 billion in cash balances and the approximate $2 billion in provisions taken to date for Macondo liabilities. Moody's continues to believe that Transocean's potential exposure to criminal charges is small compared to BP's exposure. We remain more concerned about the possibility of an allocation of environmental fines and penalties to Transocean because of its role as the contract driller in what is commonly referred to as the worst oil spill in US history.

"The big elephant in the room for Transocean is its potential exposure to Clean Water Act fines and penalties as owner of the Deepwater Horizon," according to Stuart Miller, Moody's Senior Credit Officer. "The recent agreement between BP and the US government did not address the claims under the Act."

While the BP settlement for criminal charges is a large step forward in the resolution of the Macondo court case, significant contingent liabilities remain as they pertain to both BP and Transocean. Moody's believes that Transocean will ultimately settle with the Department of Justice, and there is a good chance that the dollar amount will be manageable given the current provision level and cash balances. However, if gross negligence is proven, a very high legal standard, the settlement amount could result in payments by Transocean in excess of its current provision amount.

The principal methodology used in rating Transocean was the Global Oilfield Services Industry Methodology published in December 2009. Please see the Credit Policy page on www.moodys.com for a copy of this methodology.

Transocean, Inc. is a leading provider of offshore contract drilling for oil and gas companies around the world. The company is a wholly-owned subsidiary of Transocean Ltd. which is headquartered in Zug, Switzerland.

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Stuart Miller VP - Senior Credit Officer Corporate Finance Group Moody'sInvestors Service, Inc.250 Greenwich StreetNew York, NY 10007 U.S.A. JOURNALISTS: 212-553-0376 SUBSCRIBERS: 212-553-1653Steven Wood MD - Corporate Finance Corporate Finance Group JOURNALISTS: 212-553-0376 SUBSCRIBERS: 212-553-1653 Releasing Office: Moody's Investors Service, Inc.250 Greenwich StreetNew York, NY 10007 U.S.A. JOURNALISTS: 212-553-0376 SUBSCRIBERS: 212-553-1653(C) 2012 Moody's Investors Service, Inc. and/or its licensors and affiliates (collectively, "MOODY'S"). All rights reserved.

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