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Per Capita Debt

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Per capita debt
The total bonded debt of a municipality divided by the population of the municipality.
per capita debt
The total debt of a municipality divided by the municipality's population. Financial analysts use per capita debt when evaluating a municipality's ability to repay its debt.
Per Capita Debt
The amount of municipal debt divided by the number of persons in that municipality. Because most municipal bonds are guaranteed in some way by the municipality tax revenue, the number of taxpayers in that municipality is important in determining its ability to repay the bonds. As a result, credit ratings agencies use per capita debt in rating municipal bonds.


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