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Noble Group dealt fresh blow as Fitch cuts its ratings yet again

Bloomberg Published on Fri, May 26, 2017 / 8:54 AM GMT+8

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SINGAPORE/HONG KONG (May 26): Noble Group Ltd. received a fresh blow as Fitch Ratings Ltd. cut the embattled commodity trader’s rating for a second time in the space of 10 days, flagging concern over its ability to address about US$2 billion ($2.8 billion) of debt that matures over the next 12 months.

The Hong Kong-based company is in talks with banks to renew a borrowing base facility that expires next month, and Fitch said a successful rollover of a large part of this is “critical” for its liquidity. Fitch expects the banks will do so, but on less favourable terms, according to a statement late on Thursday.

The cut from Fitch came as Morgan Stanley emerged as a major shareholder in Noble Group, with a stake of 7.95%, according to three statements to the Singapore exchange, the last of which cited an aggregation of global positions. The bank owns the stake at the same time that it’s been mandated by Noble Group to review its strategic alternatives, along with Moelis & Co.