Gatwick sale to cover debt - BAA

Debt-laden British airports operator BAA said £1

Debt-laden British airports operator BAA said £1.2 billion sterling in cash raised from the sale of Gatwick airport will enable it to cover all significant financing commitments through to 2011.

The operator, majority-owned by Spain's Ferrovial, said in a trading statement that proceeds from the £1.51 billion sale agreed earlier this month would cover in full £1 billion of debt maturing next March.

Net debt was £9.77 billion, up from £9.42 billion at the end of 2008, and the firm was operating comfortably within its financial ratios.

It said nine months adjusted earnings before interest tax, depreciation and amortisation (EBITDA) rose 16.8 percent to £804.6 million.

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Operating costs fell 3.3 per cent and one-off pretax charges totalled £537 billion .Its outlook for 2009 remained in line with expectations.

Ferrovial yesterday denied speculation it was about to make a capital hike.

Reuters