The only problem is that Centro's debt is not based upon the Australian interest rate, but mainly upon (from Centro's debt docs)
"(3) As determined by the applicable loan agreement, interest on these obligations use either the 30-day BBSW rate of 7.44%, 30-day BBSY rate of 7.94% and 30-day LIBOR rate of 2.48%, as of 30 June 2008, plus spreads ranging from 135 to 175 basis points."
The 30 day Libor Rate is currently 1.9 but was down to 1.4 a few days ago and was as high as 4 in early Oct - so its been up and down.
30 day BBSW (bank bill swap rate) rate was 4.65 yesterday
30 BBSY (bank bill swap bill rate)??
So there has been some benefit with Libor, but the main benefit looks to be with the BBSW (and possibly BBSY - can't find this rate). So the 1% statement is really just an overall statement and is meaningless without all of the detail knowing how much debt is at which rate - but nonetheless I thing there is a substantial upside.
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