Already buckling under heavy debts, airports operator BAA suffered a further
blow when its credit rating was slashed to BB-, relegating it to junk status.
Credit rating agency Standard & Poor’s said poor quality service and high
staff turnover in senior management had prompted the cut.
BAA, which operates Heathrow, Gatwick and Stansted, was acquired by a
consortium led by Spanish group Ferrovial for £16.3bn. The deal was highly
leveraged and the group has since encountered refinancing delays that could lead
to ‘liquidity tensions’ S&P warned.
The high leverage allowed the consortium to take advantage of generous tax
relief on interest on debt, but the company, with earnings of £879m, now has
little headroom to cover the £820m debt on BAA’s books.
The BAA rating cut will raise concerns over foreign acquisitions of key UK
assets and the risks using of heavy leverage to make acquisitions.
Mark McMullen joins the private client services team from Smith & Williamson
Merger between Clear & Lane Chartered Accountants and Magma Chartered Accountants was finalised on 3 February
BDO has taken its new partner intake to 23 during the first half of its financial year, including the appointment of five partners in five weeks
The firm reports 7.6% global fee income growth for the year ending 31 December 2016