Battle-hardened Noble investors shrug off downgrades

Even as Moody's and S&P again cut the ailing commodities trader's ratings, speculation creditors will throw it a lifeline, propping up bond prices.

Noble Group's US-denominated bonds remained largely unchanged on Tuesday after ratings agencies Moody's and SP again cut their ratings on the troubled commodities trader deeper into junk territory.

Thick-skinned bond investors, who've stuck with the struggling company despite a string of negative news, seem content to stay on in the belief that Noble's $2 billion line of credit, which is due to expire in October, may be extended.

The group's outstanding 2018, 2020 and 2022 notes rallied in the past two weeks, even though the group in late July issued a profit warning, pointing to a loss of as much as $1.8 billion for...

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