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Swiber’s blowout unlikely to capsize banks

Benjamin Cher
Benjamin Cher9/8/2016 04:43 PM GMT+08  • 3 min read
Swiber’s blowout unlikely to capsize banks
SINGAPORE (Sept 8): Oil and gas player Swiber’s spectacular financial meltdown appears unlikely to significantly affect local banks, with UOB Kay Hian maintaining its “overweight” on the sector.
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SINGAPORE (Sept 8): Oil and gas player Swiber’s spectacular financial meltdown appears unlikely to significantly affect local banks, with UOB Kay Hian maintaining its “overweight” on the sector.

“Our call is premised on banks’ cheap valuations, which have already built in expectations of credit losses from the O&G sector,” says analyst Jonathan Koh in a note on Thursday.

On Monday, the interim judicial managers (IJM) announced they have attracted 24 potential investors to the rescue. However, the IJMs stressed that the prospect of saving Swiber hinges on support from all stakeholders to complete the US$1.7 billion worth of projects, says analyst Jonathan Koh.

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