BAA has been forced to restore investors’ confidence over its borrowing, following last week’s ruling by the Competition Commission.
Although the commission said it would allow the airport authority – which owns seven UK airports – to increase landing charges in London, BAA said it would still have problems refinancing its debt because of the ruling.
“The Competition Commission’s proposals, if adopted by the Civil Aviation Authority without amendment, mean that BAA might not be able to implement its refinancing plans as currently envisaged,” BAA said in a statement yesterday.
It added: “BAA will continue to present its strong arguments to the CAA regarding the amendments that it believes need to be made to those proposals to ensure the CAA recognises the needs of the business in its final regulatory settlement.”
Ferrovial, the Spanish firm which owns BAA, must refinance the organisation’s debt to enable the multi-billion pound investment in the redevelopment of Heathrow’s Terminals 1 and 2.
BAA said its aim was still to refinance its debt within regulatory requirements, in discussion with key investor representatives including the Association of British Insurers.