C&W: needs retuning

Credit of the month

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Julie Lamirel
Lehman Brothers

Underweight
We have long viewed C&W as a deteriorating credit owing to the poor operating profile; recent disclosure has confirmed our analysis. In fact the credit could further deteriorate because the business model remains questionable. Hence the company is vulnerable to a fall to high yield and will need to show superior execution for us to change our negative view, which may require a change in management.

C&W Global’s restructuring plan, announced on N