debt service


Also found in: Dictionary, Thesaurus, Legal, Acronyms, Encyclopedia.
Related to debt service: Debt Service Ratio, annual debt service

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 ?
The debt service ratio has fluctuated between 10 percent and a little more than 13 percent since 1980.
Although the parties to the adversary proceeding are seeking expedited action by the Bankruptcy Court, whether the court will find for the bond trustee and whether the timing of any such decision will permit payment by the county if RACI is unable to make payment of the remaining debt service, cannot be predicted at this time.
Fitch's gross coverage calculation (which does not net series payments or interest earnings from pledged revenues and debt service, and as such is a more conservative calculation than that defined in the master resolution) indicates that senior debt service coverage at its lowest point will be about 1.
In the event the city defaults in a gas price environment higher than $40 per MMBtu, debt service payments are not at risk since payments in the flow of funds to the debt service fund are senior to payments to the swap counterparty.
Under Fitch scenarios which project 4%-6% annual traffic increases, well below the 9% average rate of the past six years, debt service coverage would remain under the rate covenant, and would require an estimated $1.
However, the authority continues to face a shortfall with the upcoming January 2007 debt service payment.
SGR bondholders' claim on gross revenues is subordinate only to FGR debt service deposits, authority administrative costs, and the FGR debt service reserve fund (DSRF).
The rating reflects sound debt service coverage by a first lien on solid waste resources fee (SWRF), formerly the sanitation equipment charge (SEC), revenues collected by the city, the stability of these revenues, and the city's breadth and diversity.
However, the series 2006A and series 2006B debt refunding and restructuring continues the authority's efforts beginning in 2004 to incrementally establish a more level debt service profile.
The two-notch rating upgrade and the Stable Outlook is based solely on the strength in VVRH's sales tax debt service subsidy, not on VVRH's hospital operations.
The underlying 'A' rating reflects the good debt service coverage provided by pledged state deed recording fee revenues, the availability of significant other revenues that could be used to pay debt service, if necessary, early pre-funding of debt service, and the formal involvement of the State of South Carolina (general obligations rated 'AAA' by Fitch).