Noble says its rating metrics will “substantially exceed those required of an investment grade credit” once the sale of its Noble Agri is completed.
Noble’s response comes as ratings agency Moody's downgraded the commodities trader on Tuesday, following the latter’s recent lowering of ratings across the entire commodity sector.
In April, China’s COFCO Corp. agreed to pay US$1.5 billion ($2.1 billion) for a majority stake in Noble’s agribusiness.
“We are confident that the deal will be approved by our shareholders and will close before the end of February,” says Noble.
“It is unfortunate that this transaction has seemingly, in our view, been outweighed by Moody's negative view of the commodity producer segment,” it adds.
Noble explains that as an asset-light supply chain manager, the current environment is “opportunity rich and plays to its strengths”, while the low price environment “substantially reduces” the working capital required to support its business.
“We continue to enjoy investment grade status with our two other ratings agencies and will work with Moody's to ensure that our rating reflects the financial metrics that Noble will attain.”
Noble closed 1.12% lower at 44 cents.
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Noble’s response comes as ratings agency Moody's downgraded the commodities trader on Tuesday, following the latter’s recent lowering of ratings across the entire commodity sector.
In April, China’s COFCO Corp. agreed to pay US$1.5 billion ($2.1 billion) for a majority stake in Noble’s agribusiness.
“We are confident that the deal will be approved by our shareholders and will close before the end of February,” says Noble.
“It is unfortunate that this transaction has seemingly, in our view, been outweighed by Moody's negative view of the commodity producer segment,” it adds.
Noble explains that as an asset-light supply chain manager, the current environment is “opportunity rich and plays to its strengths”, while the low price environment “substantially reduces” the working capital required to support its business.
“We continue to enjoy investment grade status with our two other ratings agencies and will work with Moody's to ensure that our rating reflects the financial metrics that Noble will attain.”
Noble closed 1.12% lower at 44 cents.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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