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Without this nugget it is hard to form a sensible judgment about Noble's books or health.Even if its shares fall further, Noble can service its debts—it has $2 billion falling due in the next two years, against about $5 billion of liquidity in the form of cash and bank facilities.
The JSE fell by 12% last year; and since South African interest rates are high (about 20%), the average black-chip's shares have not done well enough for it to service its debts.
It announced in mid-July 1861 that it could not service its debts, having just ended its own civil war (called the War of the Reform), and so suspended payments to its European creditors.
But the IMF stopped lending to the country in 1986 when it failed to service its debts.
With the recent collapse of the oil price, it is scrambling just to service its debts.
Clearly, dropping to double-A would make it more expensive for America to service its debts.
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The Russian government has already given Cyprus a 2.5 billion euro three-year loan at a below-market rate of 4.5 percent to help it service its debt.
If the company is unable to service its debt, it could go bankrupt.
Keep in mind that Mirant filed bankruptcy not because it could not service its debt load but, rather, because it could not meet its maturity schedule.
Vasp has had to abandon some domestic and foreign routes recently as it struggles to service its debt.
Even before the crisis, Renong was so leveraged that it could not service its debt from its operating cash flow.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com