back to fundamentals, page-5

Agree. It is more prudent to preserve capital and not paying under the current environment. However, they have got the capacity to pay, given that negative accounting NPAT was due to non-cash impairment charges as per A-IFRS. The earnings capacity of the businesses was not hampered in Fy2008.

Going forward, earnings is likely to be lower in FY2009, but will remain acceptable.

There is still ample headroom in financial covenants even taken into account the anticipated economic slowdown.
I wouldn't expect covenants breach (ICR or LVR).