While we recognize the not insignificant challenges, we are likely to be more constructive on ESFG given that we see the fortunes of this entity being more closely tied to that of BES, given the multiple points of attachment between these entities in the form of cross-exposures, including financing as well as the guarantee which ESFG has provided to retail investors in ESI debt instruments. While the recent market reaction is also partially explained by concern surrounding the asset quality of the BES Angola business, we tend to downplay the potential risk for BES as the new CEO confirmed that the guarantee will be an effective risk mitigating factor in the AQR. Quite simply, we think it is less than realistic that the market can be pricing such differing scenarios for BES and for ESFG, as inferred by the difference in the cash price of their LTII instruments. Our expectation would therefore be that once the restructuring plan for the ES Group is disclosed, the informational gap which has undermined the broader group will be minimized, potentially leading to an improved performance of the ESFG debt instruments.