Noble: (S$0.36) Moody's downgrade credit rating to Ba3 from Ba1
Moody's Investors Service has cut Noble's corporate family, senior unsecured bond ratings to Ba3 from Ba1, with rating under review for further downgrade.
The downgrade reflects the impact of the unexpected assets write-down on Noble’s business and financial profile, which is expected to raise the group's net debt/net capitalization to ~58% at end-4Q15, from ~51% at end-3Q15.
The further rating review are on concerns on Noble's progress in resolving its liquidity issue, especially in light of the group's impairment charges.
To recap, Noble's liquidity will remain constrained until it refinances ~$1.6b in bank facilities due May '16.
The credit agency cited that ratings can be downgraded within the next few weeks, if there is no material progress in the group's refinancing.
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