WASHINGTON (dpa-AFX) - Fitch Ratings said Thursday that it has downgraded the Issuer Default Rating and senior unsecured ratings for Noble Corp. (NE) from 'A-' to 'BBB+'. The Rating Outlook remains Negative. The downgrade is a result of the increased aggressiveness in the company's newbuild program and increasing certainty that Noble will not, in the near term, return to leverage levels previously identified by Fitch as consistent with retaining the 'A-' rating, the rating agency said in a statement. Fitch said the Negative Outlook reflects the continuing industry recovery from the impacts of the post-Macondo environment, including higher levels of fleet downtime, higher debt levels, and increased capex expectations, all of which the rating agency anticipates will extend the current period of weak credit metrics for the company. Looking forward, Fitch expects Noble will generate negative free cash flow in 2012 and 2013 due to its expanded newbuild capital expenditures combined with operating cash flows that are continuing to recover from depressed levels.
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