Kevin O'Toole/LONDON
GROWING anticipation of a change in Airbus Industrie's consortium structure has helped prompt a downgrading of the European air-framer's debt rating.
Airbus is established in France as a GIE, which is similar to a partnership arrangement, under which each of the partners takes responsibility for the consortium's liabilities. The rating has therefore rested on the balance-sheet strength of Aerospatiale, Daimler-Benz Aerospace (DASA), British Aerospace and CASA.
Moody's Investors Service, a leading credit-rating agency, believes that moves to change this GIE status could now weaken the link between Airbus and its parents, with doubts over what would replace it.
Increasing pressure has been coming from the UK and Germany to establish a more independent corporate structure for the consortium, allowing it to take tighter control of costs and gain access to funds on its own account.
A panel representing the Airbus partners has been studying the issue and is due to present a report on the change in status by the middle of the year.
Until now, moves towards a new structure have foundered on French objections, but these seem to be weakening. French transport minister Bernard Pons has called for change and admitted that the existing consortium arrangement is making Airbus uncompetitive.
Aerospatiale chairman Louis Gallois is still "cautious" over moving too quickly, however, warning that key issues must first be resolved, over the areas, which the new business would cover. Whether a single Airbus design office, could be extracted from the combined civil and military business, of BAe and DASA is one key issue, highlighted by Pons.
Even without a radical structural change, which many close to the consortium acknowledge is unlikely in the near term, Moody's says that the weakening credit quality of Aerospatiale on the French Government's privatisation list) and DASA are causing concern.
The agency has therefore downgraded the consortium's rating, although it still retains a high, investment grade A, credit rating.
Pressures on the partners' already fragile balance sheets is a major factor prompting the review of structural change at Airbus, especially with the prospect of the launch of the A3XX high-capacity transport project.
Government aid is strictly limited under the trade agreement struck between the USA and Europe, and Airbus itself is restricted in access to capital and equity markets.
A corporate holding-company structure would allow new partners to be brought in from Asia and Europe, to help fund specific projects in areas such as regional jets. Italy's Alenia has already been partially involved through the Future Large Aircraft project, which will be built under supervision from a new Airbus military arm.
Source: Flight International