Noble Group Credit Deteriorates Sharply - Market Talk

0953 GMT [Dow Jones] Noble Group (N21.SG) is among Asia's worst performing credits Wednesday, with the spread on the five-year credit default swap in the name spiking up 18.6%, according to Markit. In other words, it costs investors 18.6% more to protect against default on Noble Group bonds, a fairly stunning one-day move. The commodities trader has been under pressure since February when an anonymous blogger raised concerns about its accounting practices, and an "investor day" hosted by the firm on Monday seemed only to fuel anxieties. Charles Macgregor, head of Asia at Lucror Analytics says investors are worried that a loss of confidence in the firm could translate into a loss of access to capital, raising the risk of default."The problem we have is we have two ratings agencies that have a negative outlook (on the firm) and that must have some impact on their bank lines," says Macgregor.