Clariane - Looking at it differently

We have changed our approach to assessing the credit quality of Clariane, creating an OpCo and PropCo structure. Assuming a rental charge to adjust EBITDA for the operating Company we have arrived at leverage and interest coverage statistics for the Operating entity. This is a prudent approach and doesn't adjust for the potential equity value within the property segment. We assess the impact on the credit of delays in executing the fourth pillar of the restructuring plan. However, for the operating entity, occupancy rates and staffing costs remain the fulcrum assumptions in future profitability of Clariane.