HONG KONG's Noble Group's credit rating has been cut to junk by Standard & Poor's (S&P) on concerns about financing costs for Asia's biggest commodity trader a week after a similar downgrade by Moody's Investors Service.
"We downgraded Noble because the company's liquidity is below what we expect for a strong liquidity position, despite the sale of its agricultural unit," S&P credit analyst Cindy Huang said in a statement and cut the company's rating to BB+ from BBB-.
"Given the prospects for a prolonged slump in commodities prices, we expect lenders to take a more cautious view toward financing commodities businesses," Ms Huang said.
Analysts expect the downgrades to put more pressure on Noble, which has a total of $2.5 billion worth of loans due in 2016, according to data from Thomson Reuters LPC.
WORLD SHIPPING
11 January 2016 - 20:06
S&P cuts Hong Kong's Noble Group rating to junk after Moody's downgrade
HONG KONG's Noble Group's credit rating has been cut to junk by Standard & Poor's (S&P) on concerns about financing costs for Asia's biggest commodity trader a week after a similar downgrade by Moody's Investors Service.
WORLD SHIPPING
11 January 2016 - 20:06
S&P cuts Hong Kong's Noble Group rating to junk after Moody's downgrade
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