Finally, the company mentioned that borrowings under the credit facility are subject to different covenants such as the leverage restrictions contained in the Investment Company Act of 1940, as amended, as long as the company's asset coverage ratio
under the credit facility is not less than 150%.
He added that the asset coverage ratio
requirement had been officially lowered in June, giving the company significant flexibility to increase leverage and grow its portfolio.
The asset coverage ratio
of the reorganized fund, as calculated in accordance with the Fitch total and net overcollateralization tests (Fitch OC tests), per the 'AA' rating guidelines for the MRPS, outlined in Fitch's closed-end fund criteria, were in excess of 100%.
In connection with the Special Meeting, the company plans to file with the SEC and mail to its stockholders a proxy statement that will provide additional detail regarding the company's rationale for adopting the reduced asset coverage ratio
If the Company's voting shareholders approve the proposal by the required majority of votes at its 2018 Annual Meeting of Shareholders, the 150% asset coverage ratio
will become effective on the day after such approval.
EADB has one of the highest asset coverage ratio
(Usable Equity / (Gross Loans + Equity + Expected Loss on Liquid Assets) in Moody's MDB rating universe at 120.2 per cent in 2016.
The most controversial aspect of the bill is that it would increase a BDC's ability to deploy capital to businesses by reducing its asset coverage ratio
, or required ratio of assets to debt, from 200% to 150% if certain requirements are met.
also expect its asset coverage ratio
(59%) to decline to around 45% by
The bank continued to maintain a conservative policy of non-performing asset recognition by taking additional Dh625.6 million in total credit provisions, to ensure a healthy pre-collateral non-performing asset coverage ratio
of 83.2 per cent of the total non-performing portfolio, net of write-offs.
Maintaining a conservative policy of non-performing asset recognition and remedial management, including taking an additional Dh159.8 million in total credit provisions, to ensure a healthy pre-collateral non-performing asset coverage ratio
of 82.2 per cent of the impaired portfolio, net of write-offs.
To sum up, as it is confirmed by the F-test statistics, the main explanatory variables of the profitability of the real estate companies were the fixed asset turnover, the return on sales and the level of fixed assets and debt (included into the asset coverage ratio
), all of them provided by an expansive economic cycle characterized by a high level of sales and a high leverage of the companies.