The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

Corporate securitization: BAA faces tight turnaround

Surprise suggestion to take Stansted out of the regulated asset base.

More on BAA

news-sfstansted.gif

The UK’s Civil Aviation Authority threw something of a curve ball into the path of BAA’s planned securitization last month when it proposed that Stansted Airport be “de-designated”, which would effectively remove the airport from the BAA’s regulated asset base (RAB). The CAA has taken the view that a deregulatory environment might bring forward “efficient and economic” investment that “furthers the reasonable interest of users”. BAA does not yet charge up to the price cap set by the CAA at Stansted. The low-cost carriers that currently dominate the airport do not seem willing to support proposals for expansion – including a second runway. The removal of price caps would be one way to address this.

BAA has a current RAB of about £10 billion ($19.7 billion), which includes the three London airports of Heathrow, Gatwick and Stansted. All three were destined to back the refinancing. Tim Jagger, co head of investment grade corporate credit research at RBS, calculates that Stansted accounts for roughly 14% of that figure, and that this will leave £8.6

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree