Fitch: Noble view to positive

Fitch Ratings said it revised the outlook on Noble Group Ltd.'s long-term foreign-currency issuer default rating to positive from stable and affirmed its issuer default rating and senior unsecured rating at BBB-.

Noble's capital expenditure and investments in supply chain infrastructure, totaling $2.3 billion in the last three financial years, has placed it on track for potential expansion in scale of operations and increased gross profit generation, which may be more in line with its BBB-rated peers, Fitch said. That is the reason for the outlook revision, the agency said.

Noble has demonstrated a track record of growth and balance sheet resilience through commodity cycles, the agency said.

Apart from the scale of its operations, Noble's ratings are constrained by the inherent volatility of the commodity markets, leading to fluctuations in gross profits for individual product segments and overall working capital needs, Fitch added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.