annual debt service

Annual Debt Service

The total amount of money required each year to make payments on the principal and interest on long-term loans, bond interest, and the principals of maturing bonds. One calculates the annual debt service by adding together all debt service an individual or company pays each year, or by adding debt service for a month and multiplying by 12. See also: Debt service coverage ratio.

annual debt service

The total of all principal and interest payments made over the course of a year.This figure provides one of the analytical tools for mortgage lenders of income-producing properties, who compare net annual income of the property to annual debt service on the proposed mortgage to arrive at a debt service coverage ratio. Acceptable ratios depend on the particular industry and on lending market conditions at the time.

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Credit concerns continue to center on JEA's debt profile, including higher than average leverage, and annual debt service that is increasing as a result of the continued financing of $100 million-$200 million in debt additions each year (2011 debt service is anticipated to be $129 million, roughly double 2004 levels).

Fitch Rates JEA's (Florida) $98MM Sr & $10MM Sub Rev Bnds 'AA'

30, 2007 LHV covered maximum annual debt service by a solid 1.

Fitch Rates Lutheran Senior Services, Missouri's, Series 2007 Bonds 'A-'; Outlook Stable

25 times (x) annual debt service and an additional bonds test of historical revenues at least 1.

Fitch Rates Beverly Hills, California's $35MM Water Revs 'AA+'

0x coverage of maximum annual debt service from all revenues on a historical basis and 1.

Fitch Rates Akron, Ohio's $165MM Income Tax Rfdg Bonds 'A+'; Outlook Stable

These features include: the bonds' level debt service structure and short, 20-year life; the additional liquidity provided by minimum fund balance levels (equal to maximum annual debt service [MADS]); and a pledge to refill reserve draws from legally available funds of the 22nd District Agricultural Association (the district), a state entity which owns and operates the 410-acre Del Mar Fairgrounds facility.

Fitch Affirms Del Mar Race Track Authority, California at 'BBB-'; Outlook Stable

Maximum annual debt service (MADS) based on fiscal 2005 pledged revenues is solid 1.

Fitch Rates Mansfield Park Facilities Development Corp.'s (Texas) Sales Tax Revs 'A+'

A reserve for all parity debt, at the least of 10% of bond par, 125% of average annual debt service or maximum annual debt service, is available to make up shortfalls that could potentially occur due to any missed repayments.

Fitch Rates New Hampshire Municipal Bond Bank 2006B Revs 'AA+'; Outlook Positive

1x rate covenants, both systems are required to maintain a bond reserve at the lesser of maximum annual debt service on the bonds, 1.

Fitch Lowers Pontiac, Michigan's Water & Sewer Bonds to 'BB'; On Watch Negative

3 times (x) maximum annual debt service, based on current revenues, helps alleviate these overlying pressures.

Fitch Lowers Pontiac Tax Increment Finance Authority (Michigan) Area #3 to 'BB+'; Watch Negative

The bonds have second priority to 1999 Metropolitan Council Bonds, which were issued for phase one of the ARMER system and first receive the amount necessary to pay annual debt service costs.

Fitch Rates State of Minnesota's $35MM 911 Revenue Bonds 'AA-'; Outlook Stable

The city has the option to permanently remove the general fund pledge once annual net sewer revenues cover maximum annual debt service (MADS) at least 1.

Fitch Rates Sanger Public Fin Auth (CA) Lease Rev Rfdg Bnds 'BBB'

Debt service coverage for the subordinate and senior tax allocation bonds, including the new issues, is sound with fiscal 2007 projected revenues covering maximum annual debt service (MADS) 1.

Fitch Rates Pittsburg Redevel Agency, CA 2006 Bonds 'A-'; Upgrades Outstanding to 'A'