Fitch rates Noble Group notes BBB-

Fitch Ratings said it assigned an expected rating of BBB- to the proposed dollar-denominated senior notes due 2020 to be issued by Noble Group Ltd.

The proceeds will be used for the tender offer to repurchase up to $340 million of the outstanding $680 million 6.625% senior notes due 2015 and for general corporate purposes. The rating is contingent upon receipt of final documents.

The rating reflects the belief that the proposed new notes will rank pari passu with Noble Group's existing senior unsecured debt, which carries the company's long-term foreign-currency issuer default rating of BBB-. The outlook is stable.

The ratings are supported by the company's sustained track record of profit growth and balance sheet resilience through commodity cycles, Fitch said, as well as its strong risk management policies, procedures and culture.

The ratings are constrained by the inherent volatility of commodity markets, which causes the fluctuation in gross profits of its individual product segments and overall working capital needs, resulting in movements in financial leverage, the agency said.

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