Business case
Our client, a European gas distributor, needed an economic report on the necessity and reasonableness of financial ratios introduced under a regulatory reform, as well as on the potential impact of adjusting its capital structure to comply.
Our findings clarified how the proposed ratios would affect solvency and stakeholder interests, providing a robust basis for regulatory engagement and strategic decisions.
We reviewed the current and new regulatory frameworks, benchmarked practices in other jurisdictions and compared the Spanish authority’s ratios with those used by credit rating agencies. Using liquidity stress-testing and sensitivity analyses, we quantified the financial implications of compliance.