UBS is not going to slap a 'sell' recommendation on BNB - READ...

UBS is not going to slap a 'sell' recommendation on BNB - READ BETWEEN THE LINES. Their downgrading of the stock AND a comment about the lack of credibility is a very significant move. It is like real estate advertising, you have to phrase the bad news in palatable language so as not to bite the hand that feeds you.

Like all potential significant gains, investing now carries a high level of risk commensurate with potential returns.

The dividends may stop (under the lender r/v)
The business model is under threat
Their potential customers are likely to look elsewhere for listings/sales given the credibility issues.
They are likely to have to write down the carrying value of the satellite funds.
New listings of satellites are going to be difficult to sell.

Does this mean that they are going to fail.

Who knows - but the risk is there. If they manage to survive then those who buy now will do very very well (assuming takeover / management buyout / or just fixing the problems).

But you risk loosing your capital (eg AFG, ABC learning). Huge debt loads are poisonous in this environment - and recall that the USA is moving to an interest rate INCREASING bias - so funding is going to become more difficult, no less.

It all comes down to risk tolerance and what you see happening to the company.

Personally, I see that in the short-medium term there has to be some sort of 'good news' as the pressure on management to perform at the moment is enourmous. But whether this equates to a long term solution is not clear. BNB risks turning into an AFG / CNP / ABC - ie still alive, but crippled.
J.