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Noble Group Cut to Junk by S&P Sending Bond Yields to Record

  • S&P places commodity trader on watch for further rating cut
  • Shares slumped to 2008 low on Thursday amid commodity rout
Updated on

Noble Group Ltd.’s credit rating was cut to junk by Standard & Poor’s, adding fresh challenges for the commodities trading house already facing a rout in raw materials, turmoil in Chinese markets and attacks on the firm’s accounting methods.

S&P lowered Noble Group’s rating to BB+ from BBB- and placed it on watch for further possible downgrade, the ratings company said in a statement on Thursday, following a similar move by Moody’s Investors Service in late December. Noble’s dollar bonds due in 2020 dropped to a record low of 54.78 cents on the dollar, according to prices compiled by Bloomberg.