Trading in Noble shares halted after plunge

SINGAPORE: Trading in embattled commodities firm Noble Group was halted on Tuesday after it plunged almost a third to a 16-year low in reaction to a warning from Standard & Poor’s that it faced a possible debt default.

The once-mighty company has been hammered in recent years as plunging commodity prices dismantled its bottom line while it has also suffered a ratings downgrade and allegations of irregular accounting practices.

Late on Monday ratings agency S&P said the Singapore-listed firm risked defaulting on its debts in the next 12 months if losses continued and profitability was not restored. It also downgraded its ratings by three notches.

“Noble could face liquidity shortfalls in the next 12 months if the Hong Kongbased commodity trading company continues to make losses and it is unable to stabilise its profitability,” the agency said.

“The negative outlook on Noble reflects the potential that the company will face distress and a nonpayment of its debt obligations over the next 12 months.”

Noble needs $2 billion in credit ahead of the maturity next month of $620 million in loans under an existing facility.

Shares in the firm collapsed as much as 32 per cent in a blistering half-hour selloff after the open, prompting a trading halt.

It was down more than 28 per cent at Sg$0.42 by the time trading in the firm finished — lows not seen since 2001. — AFP