Bye Bye positive Cash-Flows; Welcome MTM Gains ?


Today Noble’s narratives are muttered, find only why.

Refinancing is reported under-subscribed and on highly disadvantageous terms.

Noble Group has slumped 14% after the Fitch Debt Ratings watch action

Q1 Financial Results are to be released on 12 May 2016.

Keep listening – further updates are on their way.






Negative: Future developments that may, individually or collectively, lead to negative rating action include: – failure to continue procuring committed bank facilities at competitive pricing levels and terms, especially the failure to refinance a large portion of the USD2.2bn facilities maturing in May 2016 – liquidity position (as defined by unrestricted cash and cash equivalent plus undrawn committed facility) to total inventory sustained below 1.0x (1.10x at end-3Q15) – working capital/total debt sustained below 1.0x (1.14x at end-3Q15) – sustained negative cash flow from operations (CFO was negative in 2014 and 2010 out of the past five years) – weakened business strength as evidenced by reduced funding capacity to support working capital expansion over the cycle or sustained decline in tonnage volume that is more severe than industry performance, and evidence of weakening of risk management processes – sustained weakening of quarterly EBITDA / working capital below 4% (this ratio fell below 4% for four times in the past 32 quarters) – in the event of a downgrade into the ‘BB’ rating category, the senior unsecured ratings might be revised down one notch from the IDR if the company’s unencumbered assets to total unsecured debt ratio is sustained below 2.0x (“the Asset valuation card”)



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