Regarding interest rate decreases the best guage I king find is in the investors pack:
"A 100 basis point increase in interest rates in every jurisdiction that BBI operates results in a reduction of cash available for distribution of approximately 0.7 cents per security."
At June 2008 cash avaiable for distribution was around $257m. There are around 2.4 billion shares on issue. Using the above as a guide and hoping my maths are right a 1% drop in interest rate will result in about $17m in extra cash available for distribution.
This is not that massive, but helpful, as we need to remeber between 81-89% of the debt is hedged till 2010. BBSW linked debt is probably were interest rate savings will be made (such as Beppa). If my maths are wrong please let me know.
Cheers
BBI Price at posting:
8.3¢ Sentiment: LT Buy Disclosure: Held
