Investment Focus 
 
` We rate SNC as a BUY based on its attractive valuation 
and our expectation that the core E&C business will 
continue to perform well.  
` The Audit Committee independent review was 
inconclusive on the use of the US$56 million of payments, 
which leaves the door open to potential sanctions from 
regulators if new information is uncovered. However, we 
are comforted by the company’s conclusion that the 
payments are likely an isolated event. We expect that the 
successful implementation of recommendations aimed at 
strengthening internal controls and improving 
transparency will allow management to restore investor 
confidence.