S&P downgrades Noble

Standard & Poor’s said it lowered the long-term corporate credit rating on Noble Group Ltd. to BB+ from BBB-.

The agency also said it lowered the long-term issue rating on Noble’s outstanding senior unsecured notes to BB from BBB-, along with its long-term Greater China regional scale rating to cnBBB from cnBBB+ and on the company’s notes to cnBB+ from cnBBB+.

The ratings remain on CreditWatch with negative implications, S&P said.

The downgrades are due to the company’s liquidity, which is below expectations despite the sale of its agricultural unit, the agency said.

The company’s credit standing in the capital markets and with lenders has weakened, reflected in its depressed securities prices, S&P said.

The ratings remain on CreditWatch negative because the outlook for Noble’s capital raising could be challenged by the weak commodity markets, the agency added.

The company has a good track record in executing on its capital plans, including the recent sale of Noble Agri Ltd. But the current depressed commodities markets and heightened risk aversion by lenders could complicate the company’s fundraising plans for the next few months, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.