Rating agency Standard & Poor's (S&P) has cut its investment credit rating on Noble Group Ltd to junk yesterday, just a week after Moody's downgrade. S&P noted that "the current depressed commodities markets and heightened risk aversion by lenders could complicate the company's fund raising plans for the next few months."

However, Noble said that the downgrade is not expected to have a material impact on its operations, noting that the increased collateral calls have been immaterial and below the previously indicated range of US$100-200m. Management also highlighted that Fitch has affirmed Noble’s rating. We currently have a HOLD on the stock with a fair value of S$0.44.

Source: OCBC Research - 8 Jan 2016