Fitch downgrades Noble to junk

Fitch Ratings said it downgraded the long-term issuer default rating of Noble Group Ltd. to BB+ from BBB-.

Fitch also said it downgraded the senior unsecured ratings to BB+ from BBB- and removed the ratings from Rating Watch negative.

The outlook is stable.

The downgrades reflect an expectation that Noble’s debt structure is shifting toward shorter term financing to complement its asset-light business model that focuses on working-capital management, Fitch said.

This will result in a weakening debt-maturity profile, which is no longer consistent with an investment-grade rating, the agency explained.

The stable outlook reflects Noble’s continuous improvements in its balance sheet and its commitment to maintaining sufficient liquidity to cover its working-capital needs, Fitch said.

© 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.