You are here

Noble Group cut to junk at S&P following downgrade by Moody's

NobleGroup041115.jpg
Noble Group Ltd's credit-rating was reduced to junk by Standard & Poor's and placed on watch for further cuts, deepening the challenges facing Asia's top commodity trader as it seeks to sustain investors' faith amid the raw-materials rout and attacks on its accounting.

[LONDON] Noble Group Ltd's credit-rating was reduced to junk by Standard & Poor's and placed on watch for further cuts, deepening the challenges facing Asia's top commodity trader as it seeks to sustain investors' faith amid the raw-materials rout and attacks on its accounting.

The agency lowered Noble Group's local and foreign currency ratings to BB+ from BBB-, according to a statement Thursday.

The downgrade by S&P follows a similar move by Moody's Investors Service in the final week of December.

The downgrades will test chief executive officer Yusuf Alireza's view that while the investment-grade rating was desirable, it wasn't required for the business.

sentifi.com

Market voices on:

The cuts came even after Noble Group agreed to sell the remainder of its agricultural unit to China's Cofco Corp for at least US$750 million to bolster its finances and reduce debt.

Noble Group lost almost two-thirds of its value in 2015, making it the worst performer on Singapore's benchmark Straits Times index, after a year of attacks on its finances by critics including the anonymous Iceberg Research and short-seller Muddy Waters LLC.

Shares tumbled to the lowest since 2008 on Wednesday as the collapse in raw materials deepened.

grab

Receive $80 Grab vouchers valid for use on all Grab services except GrabHitch and GrabShuttle when you subscribe to BT All-Digital at only $0.99*/month.

Find out more at btsub.sg/promo

Powered by GET.comGetCom