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Bulletin: Gloucester-Yancoal Merger Would Improve Noble's Financial Flexibility; Profitability, Cash Flow Visibility Still Limited Dec 11
Standard & Poors, Dec 2011
Abstract
TOKYO (Standard & Poor's) Dec. 28, 2011--Standard & Poor's Ratings Services said today that the ratings on Noble Group Ltd. (BBB-/--, cnA-/--) remain on CreditWatch with negative implications following the announcement that its subsidiary Gloucester Coal Ltd. (not rated) will merge with Yancoal Australia Ltd. (not rated). In our view, the proposed merger would improve Noble's financial flexibility, particularly due to the cash proceeds from the transaction. In addition, Noble's consolidated borrowings would reduce with the deconsolidation of Gloucester and the repayment of intercompany loans. Nevertheless, we believe visibility over Noble's profitability and cash flows remains limited. We also need to assess how Noble's risk management can weather market volatilities. We will hold discussions with the company about these areas...
Companies mentioned in this report are: Noble Group Ltd.
Action: Bulletin
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research type: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.
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