S&P downgrades Noble

S&P said it lowered the long-term corporate credit rating on Noble Group Ltd. to B+ from BB-.

The agency also said it lowered the long-term issue rating on Noble's outstanding senior unsecured notes to B from B+.

S&P also said it lowered the long-term Greater China regional scale rating on the company to cnBB- from cnBB and on the notes to cnB+ from cnBB-.

The outlook is negative.

The downgrades reflect a view that the company's liquidity position has weakened despite the recent completion of refinancing and a proposed $500 million fully underwritten rights issue, S&P explained.

This is the result of shorter tenors and higher funding cost, which reflects the negative stance banks have toward the company, the agency said.

The company’s liquidity assessment also is considered less than adequate, S&P added.

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