The speculative-grade rating of Community Distributors is based on its highly leveraged balance sheet and thin cash flow coverage ratios
, along with rising profit pressure and competition.
While the holding company debt is noncash paying until 2004, ratings could be lowered if anticipated EBITDA growth is not achieved over the next year or two, or if future debt-financed acquisitions restrict improvement in cash flow coverage ratios
, Standard & Poor's said.
The downgrade of Aon's ratings are based on the increased higher leverage and recent decline in cash flow coverage ratios
of the firm.
Commonly relied on earnings and cash flow coverage ratios
alone may give lagging, upwardly biased, inaccurate readings of pipeline credit strength or weakness.
As a result, EBIT, EBITDA and operating cash flow coverage ratios
are estimated to fall well below investment grade norms, in 2001.
The above positive factors are partially offset by relatively high debt/leverage levels arising from the CSW acquisition and consequently weaker interest and cash flow coverage ratios
The above positive factors are partially offset by relatively high debt/leverage levels arising from the CSW acquisition and, consequently, weaker interest and cash flow coverage ratios
In 2002, WR's consolidated EBIT, EBITDA and cash flow coverage ratios
are expected to approximate 1.
The company's cash flow coverage ratios
, namely its CFO interest coverage and debt service coverage ratio declined to 2.
Finally, banks usually monitor cash flow, and will often prescribe cash flow coverage ratios
(for example, cash flow during any given period must be a minimum of X times interest, or Y times principal and interest).
credit-rating agency attributed the review to Yamaha's strong operating performance and also to an improvement in cash flow coverage ratios
, supported by the rapidly growing Asian market and its ongoing rationalization efforts.
The ratings of the Southern Company (Southern) are supported by strong consolidated cash flow coverage ratios
, steady dividend payments from subsidiaries with solid operating performance in supportive state regulatory environments, modest double leverage at the holding company level, and skillful execution of the relatively low-risk business strategy.