CORPORATES DAILY

Corporate bonds • 3 August 2010

Rhodia: upgrade in store?

Market Comments We do not expect the sale to affect Ineos to any
The market is still in holiday mode, but the great extent, so we maintain our BUY recom-
sales volume is growing as more and more mendation for Ineos.
companies release their accounts. The generally
very favourable – and better-than-expected – Linde's accounts impressive
accounts support corporate bonds, which have Linde has just announced financial data for Q2
performed impressively over the summer at low 2010. The accounts look very strong and indi-
activity. cate that the favourable operational trend at
Linde continues. Sales grew by 11.5% to EUR
There was broad interest in all sectors across 6,104m, while operating earnings grew by
the day. 26.4% to EUR 1,396m. Linde maintained its
expectations for full-2010 of continued growth
Ineos to sell a business unit in sales and of operating earnings growing
According to a press release, Ineos Group has faster than sales. Operating earnings for 2010
entered a binding agreement to sell the busi- are now expected to be above those of the re-
ness unit Ineos Films to the Indian company cord year 2008.
Bilcare Limited. The price for Ineos Films is We maintain our BUY recommendation for
reputedly about EUR 100m. Linde’s hybrid issues, and one of the next days
we shall publish an updated recommendation.
Ineos Films has about 1,300 employees and
sales of about EUR 240m. We stop covering M-real
Publisher: We began covering M-real on 29 October 2009,
Jyske Markets Ineos Films has long been regarded as a non- finding that the company would have sufficient
Vestergade 8-16 core activity, so the sale is not a big surprise. liquidity to redeem the € Floater 2010. The
DK - 8600 Silkeborg
issue has been redeemed, and we do not find
Analyst: the company’s other bond issues attractive.
Alex Hauge Andersen
+45 89 89 76 88
Alex@jyskebank.dk iTraxx Xover VDAX
36
750
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Read more corporate b l.o 26
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www.jyskemarkets.com 350 22
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S12 S13
03-03-2010 03-04-2010 03-05-2010 03-06-2010 03-07-2010 03-08-2010

ML EUR High Yield spread Moody’s European default rate

2500 18%
16%
2000 14%
12%
10%
1500
8%
p.b
6%
1000
4%
2%
500 0%

Disclaimer: 0
03-08-2000 03-08-2002 03-08-2004 03-08-2006 03-08-2008 03-08-2010
Please see the last page
Default Rate Moody's Baseline Moody's Pessimistic Moody's Optimistic
CORPORATES DAILY
Corporate bonds • 3 August 2010
With the update, we stop our coverage of M-
real.

The full recommendation will be available in

an English version shortly.

Rhodia: upgrade in store?

Rhodia released very strong accounts for Q2
2010. Rhodia’s credit profile has improved
significantly over recent quarters. In our view,
the company will be able to reduce its financial
gearing over the coming year, and the improved
credit profile opens up for an upgrade from the
rating agencies.

We therefore maintain our BUY recommenda-

tion for Rhodia €7% 2018, while the Rhodia
€-floater 2013 is kept on HOLD.

The full recommendation will be available in

an English version shortly.

2
CORPORATES DAILY
Corporate bonds • 3 August 2010

Disclaimer & Disclosure

Jyske Bank is supervised by the Danish Financial Supervisory Authority.

The research report is based on information which Jyske Bank finds reliable, but Jyske Bank does not assume any responsibility for the
correctness of the material nor any liability for transactions made on the basis of the information or the estimates of the report. The
estimates and recommendations of the research report may be changed without notice. The report is for the personal use of Jyske
Bank's customers and may not be copied.

This is a recommendation and not an in-depth investment report.

Conflicts of interest
Jyske Bank has prepared procedures to prevent conflicts of interest, although analysts may have different tasks. These procedures have
been incorporated in the business procedures covering the corporate-bond research activities of Jyske Markets, a business unit of Jyske
Bank.

Jyske Bank's corporate-bond analysts may not hold positions in the instruments for which they independently prepare research
reports. Jyske Bank may, however, hold positions, have interests in or business relations with the companies that are analysed. The
research report has not been presented to the company prior to its release. The analysts receive no payment from persons interested
in individual research reports.

Read more about Jyske bank's policy on conflicts of interest at www.jyskebank.dk/terms.

Jyske Bank’s corporate bond recommendations – current breakdown

Breakdown of recommendations, corporate bonds (number)
35

30

25

20

15

10

0
BUY HO LD S ELL

Source: Jyske Bank

Financial models
Jyske Bank uses mainly Credit Edge from Moody’s.

Risk
Investment in this corporate bond is associated with risk. Movements in the credit market, the sector and/or the news flows, etc.
regarding the company may affect the price of the bond. See the front page of the research report for our view of the risk associated
with the corporate bond. The risk factors stated and/or calculations of sensitivities in the research report are not to be considered all-
encompassing. If the corporate bond is denominated in a currency other than the investor’s base currency, the investor accepts an FX
risk.

Update of the research report

The planned update of the report will be prepared immediately upon the release of the company’s financial statements.

See the front page for the initial date of publication of the report.
All prices stated are the latest trading prices at the time of the release of the research report, unless otherwise stated.