Noble Group’s “Margin Call” Part II: The Enron Moment

The Enron Moment

★★★★★”Our balance sheet – the strongest in recent history – represents a significant advantage as we continue to identify high value growth opportunities across the products and geographies we operate in. Maintaining our investment grade rating with the international rating agencies is a vital part of this strategy.”

      – Noble Group 2014 Annual Report, p. 27

* * * * *

“Moody’s Investors Service has downgraded Noble Group Limited’s senior unsecured bond ratings to Ba1 from Baa3 and the provisional rating on its senior unsecured MTN program to (P)Ba1 from (P)Baa3.”

Moody’s, December 29, 2015

* * * * *

“Noble Group Downgraded To ‘BB+’ On Weakened Liquidity; Notes Lowered To ‘BB’; Ratings Still On CreditWatch Negative”

– Standard & Poors, January 7, 2016

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One thought on “Noble Group’s “Margin Call” Part II: The Enron Moment

  1. The twisted part of me will be scanning for resignations and “spending more time with my family bullshit announcements”,

    Mark Hansen – Head of Metals (cool title bro!)

    Neil Dhar – Head of Carbon Steel Materials (China…blah blah massive coal play…blah blah yawn. Noble is too ashamed to mention his prior company affiliations as a trader)

    Jeff Frase – Head of Oil Liquids Trading (look out for crashing in companies affiliated with Colonial, Magellan, and Explorer pipelines, since Noble has major plays in each)

    Manish Dahiya – Head of Energy Coal (Why hello India, you look wonderful today! How can we fuck you over?)
    Gareth Griffiths – Global Head of Gas and Power (look at how they handled Naftogaz for a glimpse at power plays led by the EU to Ukraine)

    Jim Wood – Noble Americas Energy Solutions (retail electricity and…SQUIRREL!)
    Michael Nagler – Head of Chartering, Nigel Robinson & Dimitrios Kavvathas – Co-heads (not a bad dry bulk business these days…)

    Giovanni Serio – Head of Research (voted most likely to have an accident? – Ex Goldman Sachs and BP)
    Nigel Robinson – Co-head Financial Services (Ex Deutsche Bank, Goldman Sachs, Solomon Brothers)
    Jeffrey Alam – General Counsel (ex Morgan Stanley)
    Yusuf Alireza – CEO (ex Goldman Sachs Asia head and GS Global Management Committee member)

    William Randall – someone that hasn’t nearly received the amount of attention he deserves for his central role in the convoluted and poorly constructed “strategy” also known as Coal Assets.

    Robert van der Zalm – CFO (Gone)

    Bill Cronin – COO and CRO (the buck-stops-here RISK guy)
    No idea who is on the Risk Committee as that would provide a better idea as to who may bail first.

    Then later in the cycle scanning for obits on these names (you know the kind…”falling” out of hotel windows and “drowning” in bathtubs…that kind of wack obit.


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