debt service

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Debt service

Interest payment plus repayments of principal to creditors (retirement of debt).

Debt Service

The amount of money required to make payments on the principal and interest on outstanding loans, the interest on bonds, or the principal of maturing bonds. An individual or company unable to make such payments is said to be "unable to service one's debt." An example of debt service is a monthly student loan payment. See also: Debt service coverage ratio.

debt service

Funds required to meet interest expenses, principal payments, and sinking fund requirements during a specific time period. A firm's ability to service its debt is estimated by comparing cash flow with debt service.

debt service

The amount necessary to make principal and interest payments on a loan.It does not include amounts collected each month as a reserve for insurance or real estate taxes and does not include payments for private mortgage insurance.

References in periodicals archive ?
Once credits are placed in one of these categories, a more favorable evaluation is not applied until the country has demonstrated a sustained ability to service its debts in an orderly manner.
The ratings of CILCORP, an intermediate holding company of AmerenCILCO with substantial debt, would also be affected by negative legislative actions in Illinois, as it is solely dependent upon the upstreaming of dividends from AmerenCILCO to service its debt.
Dollar presents Adjusted EBITDA as an indication of operating performance and its ability to service its debt and capital expenditure requirements.
Cendant expects that the refinancing of these debt securities and any other debt at the time of the spin-offs will be allocated among the new Real Estate Services, Hospitality, and TDS companies, generally based upon the expected ability of each new company to service its debt load.
Additionally, access to domestic borrowing and export earnings, from hydrocarbons in particular, should be sustained in the immediate future, contributing to the sovereign's ability to service its debt in a timely manner.

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