Cromwell: Rising Bond Yields Add to Balance Sheet Stress; Uncertainty Is Extreme

We reduce our fair value estimate for Cromwell by 18% to AUD 0.70, down from 0.85, and our Uncertainty Rating worsens to Extreme from High. A rise in bond yields, and a slump in Cromwell’s stock price to AUD 0.35 per security, make it unlikely it can raise equity at our previously assumed AUD 0.50 per security. We now assume Cromwell raises AUD 510 million at AUD 0.30 per security.