Moody's: Noble Group view to positive

Moody's Investors Service said it affirmed Noble Group Ltd.'s Baa3 issuer and senior unsecured bond ratings and revised the outlook to positive from stable.

These actions are based on the expectation that the announced transaction with Cofco Corp. (unrated) will have a positive impact on Noble's credit profile over the next 12-18 months.

Under the proposed transaction - which requires shareholder and regulatory approvals - Cofco will acquire a 51% stake in Noble Agri Ltd., which will hold Noble Group's agriculture business. A consortium of international investors led by HOPU Investment (unrated), will join Cofco as minority co-investors in this acquisition. Cofco will hold two-thirds of the investment vehicle with the balance held by the HOPU-led consortium.

"The transaction is credit positive for Noble both from a business and a financial perspective," Moody's senior analyst Joe Morrison said in a news release.

"The transaction, should it proceed, will result in improved profitability and interest coverage, while lowering Noble's relatively high leverage."

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