REFILE-Ferrovial may split BAA to cut debt costs-sources | Transportation | Reuters.com

REFILE-Ferrovial may split BAA to cut debt costs-sources | Transportation | Reuters.com: "REFILE-Ferrovial may split BAA to cut debt costs-sources
Mon Dec 4, 2006 1:06am ET

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FER (Ferrovial )
Last:€72.25
Change: -0.35 (-0.48%)
Revenue (ttm):€9,039.5M
EPS:2.97
Market Cap:€10,177.16M
Time:4:14am ET



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MADRID, Dec 4 (Reuters) - Ferrovial (FER.MC: Quote, Profile, Research) is considering splitting in two BAA, the British airports operator it bought this year, in order to cut its debt costs, sources close to the Spanish construction to services group said on Monday.
The sources said Ferrovial would group together all of BAA's regulated business in one unit and its commercial activity -- like shop rentals -- in another.
BAA's basic business of handling aircraft traffic is governed by regulator-set tariffs at its three London airports and, because it is a secure business with recurring revenues, could command a higher debt rating than the company as a whole.
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'The company is studying a reorganisation to associate debt to each particular asset,' said one source.
The source also said that depending on Ferrovial's study and the possible impact a split could have on ratings, BAA could issue new bonds to finance future investments. "