since BNB stated an increase of 50BPS (basis points) would cost...

since BNB stated an increase of 50BPS (basis points) would cost it an increase in interest of $15million, I am guessing that a reduction of 1% should atleast save them the $15million. I am guessing if RBA and the world governments cut interest rates, cost of capital will eventually be reduced to reasonable levels.

see below extract of the announcement made on 17/09/2008

17 September 2008
B&B INTERNATIONAL RATING LOWERED TO ‘BB’ ON FINANCIAL
MARKET DISRUPTION; OUTLOOK NEGATIVE
Please see attached Press Release by Standard & Poor’s Ratings Services.
The lowering of the S&P rating in relation to Babcock & Brown International Pty
Ltd (“BBIPL”) announced in the attached release will have the effect of
increasing the interest rate payable under BBIPL’s corporate facilities by 50
BPS. If Babcock & Brown’s corporate facilities were fully drawn down, this
increase would result in a maximum additional interest expense of
approximately A$15 million over a 12 month period. On 21 August 2008
Babcock & Brown foreshadowed a significant cost reduction program which will
more than offset this increased cost.
ENDS