S&P cuts Noble Group rating outlook to negative from stable
[HONG KONG] Standard & Poor's said it had revised the rating outlook on commodities trader Noble Group to negative from stable, citing a weakened trading risk position that could spark greater earnings volatility.
The agency affirmed Noble's rating of BBB-minus, the lowest investment grade rating. A downgrade would take the company's rating into the junk category.
S&P said Noble's trading risk position had weakened on account of growth in fair value gains from long-term commodity contracts over the past three years.
It said "the long-dated nature of these contracts creates a mismatch between profit recognition and cash realisation".
REUTERS
READ MORE:
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
S&P slashes Boeing credit outlook as rating hovers above junk status
Honda to spend US$11 billion on EV strategy in Canada
GlaxoSmithKline sues Pfizer and BioNTech over Covid-19 vaccine technology
Mapletree Industrial Trust Q4 DPU rises 0.9% to S$0.0336
Nasdaq’s profit falls as shaky economy keeps IPO revival elusive
iFast Q1 net profit surges on ePension unit performance