Noble

Noble: Share price of the commodity trader tumbled as low as 9% in early trading to $0.315, after US credit rating agency S&P cut the group's credit rating to junk (BB+) on weakened liquidity, despite the recent sale of its agri business.

The rating agency cited that Noble's credit standing with lenders has weakened, reflected in its depressed securities prices.

While Noble has a good track record in executing its capital raising plans, the current weak commodity markets and heighten risk aversion by lenders could complicate its fund raising plans for the next few months.

Hence with the uncertain outlook and limited visibility on earnings and cash flow, S&P keeps Noble's status on "CreditWatch negative", reflecting further downside risks if the industry deterioration is prolonged.

Separately, another credit rating agency Fitch cited that it is still monitoring the group's liquidity position, but noted that the group has improved its liquidity standing following the asset sale.

Bloomberg consensus currently has 4 Buy and 6 Hold ratings on the counter with an average TP of $0.62.