(Reuters) - Ratings agencies S&P and Moody's cut their credit ratings on commodities trader Noble Group on Monday, citing high default risks.
Noble Group founder and Chairman Richard Elman poses at his office in Hong Kong, China. Reuters/Bobby Yip
Once Asia's largest commodities trading house, Noble is slimming down to its core Asian coal trading business after a two-year crisis. Last month it announced the sale of its U.S. gas and power business and began the sale of its oil liquids unit.
"We see an increased risk that Noble may not be able to meet its debt obligations in the next six months, especially if the company is not able to turnaround or if it breaches its financial covenants and fails to get a waiver from banks," S&P said on Monday.
Last week, Noble reported a second-quarter loss of $1.75 billion, weeks after warning it faced its steepest quarterly loss in a year and a half and would slash jobs and sell assets to cut debt.
S&P said it had cut Noble's long-term corporate credit rating to CCC- from CCC+ meaning it heightened default risks from substantial to imminent.
Source: http://www.businessinsider.com/noble-group-downgraded-junk-at-moodys-sp-2017-8