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Malaysia's RAM Ratings cuts Noble Group rating outlook to negative

KUALA LUMPUR, Sept 11 (Reuters) - Malaysian credit rating agency RAM Ratings on Friday revised its outlook for Noble Group's long-term rating to negative from stable as the embattled commodity trader's profits could stay subdued over the next one to two years.

RAM reaffirms the AA2 rating of the Singapore-listed company's 3 billion ringgit ($695.4 million) multi-currency sukuk murabahah, or Islamic bond, programme.

Noble, one of Asia's biggest commodity traders, hit the spotlight in February when blogger Iceberg Research alleged the company was inflating its assets by billions of dollars by not fairly representing the value of its commodity contracts.

Noble has denied these allegations, but its shares have remained under pressure, falling about 55 percent so far this year.

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"The negative outlook reflects the pressure on Noble's credit profile," RAM said in a statement on its official website. (http://bit.ly/1KeqBBy)

"Noble Group's profits could stay subdued over the next one to two years amid the poor fundamentals of its key traded products, while increased working capital may continue to strain credit metrics," the rating agency said.

The prices of both iron ore and coal have reached unprecedented lows in 2014 and according to RAM, the prices are envisaged to stay depressed in the near term, exerting pressure on Noble's trading margins and earnings.

In June, Standard & Poor's had cut its outlook on Noble Group to negative from stable, saying it expects higher earnings volatility and peer Moody's Investors Service changed the ratings outlook to negative in August. ($1 = 4.3140 ringgit) (Reporting by Yantoultra Ngui; Editing by Anand Basu)