Noble Group declines as Fitch sees ‘real possibility’ of default

SINGAPORE (June 27): Noble Group shares slid Tuesday on the first day of trading after Fitch Ratings cut the embattled commodities trader’s credit rating to a score indicating that a default is possible.

(See also: Noble Group disposes stakes in warehousing services subsidiaries as Fitch cuts ratings to junk status)

The company’s stock dropped 3.8% as of 12.02pm in Singapore after a public holiday Monday. It earlier fell as much as 7.6%. Fitch slashed its rating late Friday by two steps to CCC, its third downgrade since the middle of last month. Fitch’s definition for that rating says it indicates “substantial credit risk” and that “default is a real possibility”.

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