Moody's will conduct an in-depth analysis over the next couple of months and reach a rating conclusion based on our view of Saipem's projected financial performance and ability to navigate this industry downturn. Against this background, Moody's review will assess (i) the company's order backlog and intake and bidding pipeline, (ii) execution track record including progress on loss making contracts, (iii) earnings, cash flow generation and leverage going forward, including impacts of any additional disposals or cost cutting, (iv) management's strategic objectives and financial policy considering the investment grade rating might now be downgraded, (v) progress on the equity raising and refinancing and (vi) liquidity and refinancing risk associated with the bridge to bond facility that matures by 2018 at the latest. WHAT COULD CHANGE THE RATING UP/DOWN As Saipem's provisional rating has been placed under review for downgrade, an upgrade of the rating is unlikely in the medium-term.