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Fitch cuts Noble's credit rating further into junk grade
FITCH Ratings has slashed commodities trader Noble Group's credit rating further into junk grade.
The rating agency said on Monday that it has cut Noble's long-term foreign-currency Issuer Default Rating (IDR) to "CCC" from "B-". It also downgraded Noble's senior unsecured rating and the ratings on all its outstanding senior unsecured notes to junk rating.
Fitch said that the downgrade follows continued uncertainty regarding Noble's funding capacity and how this will affect its operation at its current business scale.
The extension of Noble's US$2 billion borrowing base facilities (BBF) by 120 days from June 20 does not provide evidence of medium-term funding stabilisation, it said.
"We recognise Noble's effort to sell part of the group or its assets to aid in the restructuring of its business, but visibility over the form or success of any transaction is low given current market conditions," the agency added.