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Debt leverage

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Debt leverage
Amplification of the return earned on equity when an investment or firm is financed partially with borrowed money.

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The action is based on Standard & Poor's concerns about the company's business fundamentals and declining profitability, which outweigh the company's moderate debt leverage and good liquidity," said S&P credit analyst Hal F.
The company indicates that post-transaction debt leverage will approximate 56%, and debt-to-EBITDA will approximate 4.
The company's debt leverage as of March 31, 2005 was 50.
 
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