Monday, May 3, 2010

Transocean (NYSE:RIG) Downgraded, Under Microscope

Deepwater driller Transocean (NYSE:RIG) has come under the microscope concerning the explosion on Deepwater Horizon, and consequently has been downgraded from "Buy" to "Hold" by Argus, as uncertainties as to what it will cost the company in the short and long term makes the company and its stock unpredictable at this time.

Recommendations for Transocean on average have dropped below its competitors like Ecopetrol SA (NYSE:EC), which scored a 2.7 and Diamond Offshore Drilling (NYSE: DO), which scored 3.1.

With the incident Transocean will come under increased scrutiny, and costs of doing business in the Gulf of Mexico expected to rise for them and for other major oil companies operating in the area.

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