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Leverage ratios |
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Leverage ratios Measures of the relative value of stockholders, capitalization, and creditors obligations, and of the firm's ability to pay financing charges. Value of firm's debt to the total value of the firm (debt plus stockholder capitalization). |
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First, higher leverage ratios have been required for banks that have been downgraded on the basis of loan losses. The ratings reflect Presidental's continued profitability, the increase in its absolute capital and surplus account and the adequate leverage ratios at the holding company. The 'AA-' IFS rating of Alfa Group is, in part, based on Alfa Group's strong capitalization characterized by high risk based capital (RBC) ratios and low operating leverage ratios. |
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