Moody’s downgrades Noble, debt to B2

Moody's Investors Service said it downgraded the corporate family rating and senior unsecured debt ratings of Noble Holding International Ltd. and Noble Drilling Corp., the rated subsidiaries of Noble Corp. (Noble, Cayman Island) to B2 from B1.

At the same time, the agency downgraded Noble Holding’s probability of default rating to B2-PD from B1-PD and affirmed its SGL-2 speculative grade liquidity rating.

The outlook is negative.

"The downgrade to B2 reflects Noble's deteriorating credit metrics in 2017 and 2018 due to low utilization rates and a weak re-contracting market that is likely to persist well into 2018, potentially driving leverage to near 10x," Moody's vice president John Thieroff said in a news release.

"The negative outlook reflects Noble's challenge in late 2018 into early 2019 as it seeks to negotiate a new credit facility with the potential that liquidity could be significantly diminished from its current good level as a result."

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