Standard & Poor's has cut BAA's credit rating and warned it could downgrade the UK airport operator again once further details emerge of how its agreed £10.1bn (€14.7bn) takeover by Spanish construction group Ferrovial will be funded.

S&P cut BAA's corporate credit rating by two notches to BBB+, the third lowest investment grade rating, and left it on CreditWatch with negative implications after the UK company's board yesterday endorsed a sweetened takeover offer from a consortium led by Ferrovial.