Ferrovial appears **Strongly Suitable** for hybrid bond issuance.

Key reasons:

- **Infrastructure-like business profile:** Ferrovial is heavily exposed to transportation infrastructure and concession-style assets, with very large infrastructure project investments of about **€13.7bn** at year-end 2022. This fits well with sectors where hybrid capital is commonly accepted by investors and rating agencies because cash flows can be relatively visible, long-dated, and asset-backed.

- **Clear capital structure rationale:** The group has substantial debt, particularly infrastructure project borrowings. Total debt securities and bank borrowings were roughly **€11.55bn** including noncurrent and current borrowings, with a large portion linked to infrastructure projects. A hybrid could improve adjusted leverage metrics and provide rating headroom, especially if treated partly as equity by rating agencies.

- **Existing hybrid/perpetual securities:** Ferrovial already reports **“Other Equity Securities” of about €508m**, and the equity statement includes **perpetual subordinated bonds** movements. This indicates the company has precedent using hybrid-style capital and investor familiarity, which supports execution credibility and refinancing rationale.

- **Strong liquidity and market access:** Cash and cash equivalents were very high at **€5.13bn**, with almost **€5.0bn excluding infrastructure projects**. This liquidity, combined with the scale and public-market profile of Ferrovial, supports institutional capital market access.

- **Operating cash flow generation is positive:** Cash flow from operating activities increased to **€1.0bn** in 2022 from **€810m** in 2021. This supports coupon serviceability, even though capex and infrastructure investment needs remain meaningful.

- **Funding needs are structurally relevant:** Ferrovial has ongoing infrastructure investment requirements, including **€784m invested in infrastructure projects** in 2022 and further associate/debt instrument investments. Hybrid issuance could fund growth, refinancing, or preserve balance sheet flexibility without issuing common equity.

- **Financial profile is not overly strong:** The company is not an obvious A-category low-leverage issuer for whom hybrids would be unnecessary. Profit attributable to owners was only **€186m** in 2022, down significantly from 2021, while interest paid and finance costs remain material. This makes rating headroom and leverage management relevant.

- **Sector methodology fit:** Under the transportation infrastructure framework, Ferrovial benefits from long-lived infrastructure concessions, large scale, geographic diversity, and essential-service characteristics. These factors support investor acceptance of subordinated hybrid capital.

The main caution is that earnings include infrastructure project financing costs and some volatility from fair value adjustments, disposals, and discontinued operations. In addition, higher 2022 rates and wider subordinated spreads make hybrid issuance more expensive than in 2020–2021. However, these concerns do not outweigh the strong strategic and rating rationale.

<answer>Strongly Suitable</answer>