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S&P Downgrade Can Add More Pressure on Noble: Morningstar -- Market Talk

23 May 2017 4:58 am

0458 GMT - The S&P rating downgrade on Noble (CGP.SG) can potentially hurt the embattled commodity trader's ability to meet its refinancing needs, likely adding more pressure on the stock, Morningstar says. "Our base case view has been that the company would be able to refinance its borrowing base facilities which are used to fund its physical trades for the energy and gas & power segments," analyst Lorraine Tan says. "If the overnight plunge in its bonds following the downgrade hurts its ability to attain the refinancing that it needs, it would certainly be distressed." The stock plunged as much as 32% before going into trading halt Tuesday.(saurabh.chaturvedi@wsj.com; @journosaurabh)
 

(END) Dow Jones Newswires

May 23, 2017 00:58 ET (04:58 GMT)

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