smh article..., page-9

As a former commercial banker with a masters degree in accounting, albeit in the US, the premise of your message is incorrect. I think CNP's credit difficulties are temporary and were brought on by an overly aggressive acquisition strategy and possibly, an overly complex structure. Banks didn't lend this kind of credit unsecured(absent collateral) if they hadn't thought likewise. As for credit quality, although the underlying real estate's liquidation price is significantly less than it was one year ago due to commmercial property sales prices, businessloans are not made with the idea businesses would liquidate in the first place. If so, very few commercial loans would ever be made. This is still an upper tier quality credit quality due to the relative stability and growth of its operating cash flows.