Noble Group downgraded by Moody's as liquidity seen pressured

CHICAGO (Aug 16): Noble Group was downgraded two levels by Moody's Investors Service, as the ratings agency said the Singapore-listed commodity trader's liquidity "could come under further pressure over the next 12 months" amid weaker-than- expected profitability.

The company's cash flow will also remain under pressure over the next year, Moody's said in a statement as it downgraded Noble Group to B2 from Ba3. That along with pressure on profits "could further weaken liquidity and hinder its ability to maintain compliance with financial covenants in its credit agreements," the agency said.

Noble posted a second-quarter net loss of US$54.9 million ($73.8 million) and an increase in net debt. Its shares have dropped 53% this year.

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