S&P downgrades Noble rating to 'D'

NOBLE Group has had its rating downgraded by S&P Global Ratings, after the Hong Kong-based commodity trader said that it will miss the principal and coupon payments on two of its outstanding US dollar notes.

S&P Global Ratings on Tuesday lowered its long-term issuer credit rating on Noble to "D" from "CC".

"We lowered the ratings because Noble has missed the principal and coupon payment for its 2018 notes due March 20, 2018. Noble also missed the coupon payment on its 2022 notes due March 9, 2018," S&P Global Ratings said.

"In addition, the company said it would not make the payments despite being given 30-day grace periods to meet both obligations. The failure to make these payments will trigger cross-defaults on the company's other obligations," it added.

The ratings agency noted that Noble is currently undergoing a debt restructuring, which is expected to be completed by end-July. It said that it does not expect Noble to meet any of its outstanding obligations as the company preserves its assets during this restructuring process.