Oxera report on leverage and capital structure
- From: Vol 3, Issue 11 (November 2002)
- Category: General
- Region: Europe
- Country: United Kingdom
- Related Companies: Anglian Water, Glas Cymru, Oxera Consulting, Sutton & East Surrey Water and Welsh Water (Dwr Cymru)
By leveraging up, water companies have turned the tables on the regulator.
Whether high levels of leverage imply a lower cost of capital and whether these are the costs of capital the UK water regulator should use in calculating price caps is really rather irrelevant, according to a study published by Oxera Consulting last month.
The results of the study – which was commissioned by Ofwat – suggest that the real function of leverage ...
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