DISTRESSED DAILY: Transocean Faces $1 Billion Debt Payment Wall

Transocean Ltd. faces more than $1 billion of debt payments in the next two years, a potential problem for the company given offshore drilling’s slow recovery.

S&P Global Ratings said in a report last week that it expects the company to exchange or restructure its debts in the next six months given its “significant” upcoming maturities and high spending needs. Transocean has has $646 million of debt maturing or amortizing over the next 12 months and $895 million in the following year.

The credit grader lowered Transocean’s rating to CCC- from CCC, noting that offshore drilling hasn’t fully benefitted from ...