Moody’s downgrades Noble, notes to B2

Moody's Investors Service said it downgraded Noble Group Ltd.’s corporate family rating and senior unsecured bond ratings to B2 from Ba3, and the provisional rating on its senior unsecured medium-term note program to provisional B2 from provisional Ba3.

The outlook is negative.

"The downgrade follows Noble's weaker than expected profitability and cash flow in 2Q 2016, which necessitated a waiver under a financial covenant in its recently concluded credit facilities," Moody's vice president and senior credit officer Joe Morrison said in a news release.

"Given the company's limited ability to generate positive operating cash flow and the large debt maturities in 2Q 2017, the company's liquidity could come under further pressure over the next 12 months, despite the $500 million in proceeds from its equity rights offering."

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