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Noble Climbs Even as Moody's Flags $900 Million Funding Gap

  • Liquidity headroom ‘insufficient’ to cover debt, Moody’s says
  • SGX says it’s ‘closely monitoring developments’ at the company
Updated on

After a savage three-day sell-off, Noble Group Ltd. shares climbed on Tuesday even as Moody’s Investors Service joined S&P Global Ratings in highlighting the embattled commodity trader’s finances, saying that estimated liquidity isn’t sufficient to cover debt due by mid-2018.

Moody’s said that while the liquidity headroom, including cash and unused committed facilities, was $2.4 billion at end of the first quarter, it’s since dropped. “After paying down $650 million in bank debt and the maturity of a revolving credit facility in early May 2017, the headroom would have narrowed to $1.2 billion and become insufficient to cover the $2.1 billion in debt due,” it said in a statement as it cut Noble Group’s rating further into junk territory.