Noble's planned securities issuance not to impact ratings

Noble Groups Ltd’s planned issuance of USD perpetual capital securities will not have any immediate impact on its Baa3 issuer and senior unsecured bond ratings, Moody’s Investors Service said on Wednesday.

In a statement, Moody’s said its rating outlook for Noble remains stable, and that Noble expects to use the proceeds for general corporate purposes.

"Moody's will not rate these subordinated perpetual securities, but we would assume that these hybrid instruments will have both a debt and an equity component for the purposes of calculating leverage," Elizabeth Allen, Moody's Vice President and Senior Credit Officer, said.

She added that Moody's considers that the proposed issuance should benefit Noble's credit metrics slightly."

The debt/equity split is subject to our review of the final documentations.

"Noble is taking advantage of market conditions to further strengthen its leverage and liquidity profiles, and this is consistent with the company's prudent financial management. This proposed issuance will also help support further growth," Allen said.

The stable outlook reflects Moody's expectation that Noble will remain cautious in its expansion, and maintain an appropriate liquidity profile, although its credit metrics may exhibit some volatility from time to time.

Moody's last rating action with regard to Noble occurred on August 2, 2010, when Moody's assigned a Baa3 rating to Noble's USD750 million senior unsecured notes.

Noble's ratings were assigned by evaluating factors Moody's believes are relevant to the credit profile of the issuer, including the company's i) business risk and competitive position in comparison with peers; ii) capital structure and financial risk; iii) projected performance over the near to medium term; and iv) track record and tolerance for risk.

These attributes were compared to those of other issuers both in and outside Noble's core industry; Moody's considers Noble's ratings are comparable to those of other issuers of similar credit risk.

Noble Group Ltd is a global trader and supply chain manager and the largest in Asia. It is engaged in the sourcing, storage, transportation, and distribution of agricultural, energy, and industrial products. Headquartered in Hong Kong, it is listed on the Singapore Stock Exchange and has over 100 offices in more than 40 countries.