standard poors says bnb investment grade

Announcement out Friday PM from S & P confirming BNB credit rating as investment grade....BB+ longterm and B short term.....with stable outlook.

Babcock's BB+ long term credit rating by the international ratings agency........just one step down from an A class credit rating.

http://en.wikipedia.org/wiki/Standard_&_Poor's

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Investment Grade

AAA: the best quality borrowers, reliable and stable (many of them governments)

AA : quality borrowers, a bit higher risk than AAA

A : economic situation can affect finance

BBB: medium class borrowers, which are satisfactory at the moment
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However I am sure many investors will still read the paper, to find the real story about the companies future prospects. Although we are fortunite here to have contibutors who know more than S & P.

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This brief, rather concise comment from stockbroker Aspect Huntley probably says it all.

Given we think the company will scrape through, the main problem we have with the stock is the impossibility of accurately valuing an entity which is going to shrink when we don’t know how much. Full-year earnings could be anywhere between $200m, an NPAT covenant, and $525.1m, last year’s profit attributable to ordinary shareholders. No one, not even management, can have much idea about the second-half result. Pulling some numbers out of the air, a five PER applied to the average of these two profits gives a $5.09 per share valuation. A nine PER gives $9.16. The value probably does lie somewhere between $5 and $10 per share but this is only a tentative comment.


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