Going forward, we expect the Group to maintain an FFO debt-coverage ratio
of above 0.
They will discover that when debt expires in a rising interest-rate environment, their debt-coverage ratio
may no longer meet lender standards.
Despite lower crude palm oil (CPO) prices in FY Dec 2013, LKPP reported a net-cash position while its operating cashflow debt-coverage ratio
came in very strong at 0.
05x debt-coverage ratio
(DCR), set by Freddie Mac at rate-lock.
Massachusetts Electric's adjusted interest and debt-coverage ratios
are indicative of the favorable cost power purchase arrangements the company has with affiliate, New England Power Company.
As a result of this transaction, parent company debt will be reduced, resulting in materially improved debt-coverage ratios
and decreased dividend requirements at the operating company level.
The combination of the currency mismatch between its dollar-denominated debt and its real-based revenues and the slowdown in cash flow generation resulting from a worsened economic environment brought debt-coverage ratios
down to the lowest level in the company's rating history.
Loan-to-value (LTV) ratios have shrunk, and debt-coverage ratios
have expanded, resulting in an increase in the amount of equity required to fund a transaction and an increase in the weighted average cost of capital.
To this point, major new hotel projects in New York, despite the improving economics, still have difficulty attaining the loan-to-value and debt-coverage ratios
to meet investment banking criteria.
While no lender likes to see debt-coverage ratios
drop, they should be reassured that most stable full-service hotels will still be able to generate enough cash flow to pay their mortgages," Woodworth said.