"While we do not believe the company will be unable to meet this...

"While we do not believe the company will be unable to meet this guidance, given the current environment, perception of risk and the market not rewarding BBI for its yield, we see no reason for the company to pay it. We believe the company would be better off preserving the capital and therefore we review our forecasts.Based on the above discussion we are of the opinion that BBI's board will amend its distribution policy for FY09. We cut our FY09 distribution forecasts from the guided 10cps to zero in FY09 and to 3cps in FY10.

....BBI's long-life, long-concession, monopolistic type of underlying assets produce strong and stable cash flows, secured by regulated tariff regimes or contracted revenues. We see good potential for long-term earnings growth, but note the company has placed assets on the chopping block, and we raise questions on the outlook for distributions. That said, BBI’s assets are quality and the security price does not represent its fundamental valuation".