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 ?
Fitch expects that future earnings will allow the company to service its debt obligations with a reasonable cushion, consistent with the company's current debt rating.
Free cash flow is used by management to evaluate the Company's ability to service its debt and to fund continued growth with internally generated funds.
The ratings reflect Alestra's new debt structure and the positive impact the recapitalization and debt restructuring will have on the company's ability to service its debt obligations going forward.
Among the important factors that could cause actual results to differ are the level of direct costs and the ability of the Company to maintain gross revenue at a level necessary to maintain operating margins, the level of selling, general and administrative costs, the effects of competition, the efficient integration of the Company's acquisitions, the effects of the Company's recent acquisitions and its ability to effectively manage its growth, the ability of the Company to service its debt, the continued implementation of its management information systems, pending litigation and governmental investigations, general economic conditions, and the results of the Company's acquisition program.
At this time, however, Fitch believes that BFC is able to absorb these and continue to sufficiently service its debt.
6 billion of parent level debt and relies on dividends from its subsidiaries to service its debt and pay dividends to shareholders.

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