Feb 26 (The following statement was released by the rating agency)
Credit default swaps (CDS) on Diamond Offshore
Drilling Inc. (Diamond) have widened 47% over the past month, according to Fitch
Diamond's CDS significantly underperformed the 3.4% CDS tightening for the
broader North America oil and gas sector over the same time period.
Additionally, the cost of credit protection on Diamond's debt has been climbing
steadily since late January.
After trading consistently at 'A/A+' levels since November 2013, CDS on Diamond
have widened to price in-line with 'BBB+' levels. 'Wider CDS spreads are likely
indicative of Diamond's lower earnings as well as market concerns surrounding
the broader offshore drilling industry,' said Director Diana Allmendinger.
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