NBF take:

Our view on balance sheet effectively unchanged ...

… but we think corporate strategy is under review.

While we do not interpret this departure as a negative vote

vis-à-vis the recently announced and subsequently cancelled

public offering of debt, we do believe it signals a corporate

strategy under revamp. It is too soon to ascertain the likely

outcome of a strategic re-focus or potential impact on current

equity holders, and hence we move to the sidelines.



Moving to Sector Perform on heightened uncertainty.

Our target is trimmed modestly as we pull back EBITDA

forecasts largely on utilization reduction in Q4 and Q1. More

notably, our shift to a Sector Perform is predicated less on the

potential absolute return to our target price and more so on

the unquantifiable uncertainty surrounding a corporate

strategy in flux. We believe that an investment in TID

represents a call option on a currently undetermined growth

path; we would revisit our rating if the visibility on TID’s

expansion became clearer.