Asset Coverage Ratio

Asset Coverage Ratio

The ratio of the value of a company's assets less current liabilities to the company's total debt outstanding. These liabilities may include preferred dividends and rent. The asset coverage ratio measures how easily a company can maintain its operations with its level of debt. See also: Cash flow coverage ratio, Debt service coverage ratio.
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The fund's asset coverage ratio for total leverage, including the MRPS, as calculated in accordance with the 1940 Act also at current market values, were in excess of 225%, which is the minimum MRPS asset coverage required by the fund's governing documents.
As of August 31, 2017, the company's asset coverage ratio under the 1940 Act with respect to senior securities representing indebtedness was 404% and the company's asset coverage ratio under the 1940 Act with respect to total leverage (debt and preferred stock) was 290%.
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.
The bank said it maintained its conservative approach to non-performing asset recognition and provisioning in line with both best practice and UAE Central Bank guidelines, ensuring a healthy pre-collateral non-performing asset coverage ratio of 70.
As of October 31, 2011, the Fund's asset coverage ratio under the 1940 Act with respect to senior securities representing indebtedness was 435% and the Fund's asset coverage ratio under the 1940 Act with respect to total leverage (debt and preferred stock) was 311%.
The firm's asset coverage ratio under the 1940 Act with regard to senior securities representing indebtedness was 435 percent, and its coverage ratio for preferred shares was 319 percent.
7, 2012, the fund's VRDP Shares are no longer deemed outstanding under the VRDP Shares' governing document, and therefore the fund's VRDP Shares will not be included in the fund's calculation of asset coverage ratio and effective leverage ratio (as described below).
NYSE: CTR) has announced an unaudited statement of assets and liabilities, the net asset value and asset coverage ratio of the Fund as of April 30, 2017, the company said.
As a result, we decreased our distributable cash flow available to stockholders, but improved our asset coverage ratio.
At the time of the issuance, the fund's asset coverage ratio for the newly issued VRTP Shares, as calculated in accordance with the Investment Company Act of 1940, exceeded the minimum 225% asset coverage (Preferred Shares Asset Coverage Test) and the fund's effective leverage ratio was below the 45% maximum leverage ratio allowed by the VRTP Shares governing documents (Effective Leverage Test).
As of March 31, 2012, the fund's asset coverage ratio for senior unsecured notes, as calculated in accordance with the Investment Company Act of 1940 (1940 Act), was in excess of 300%, which is the minimum asset coverage required by the 1940 Act.
In addition, the fund's asset coverage ratio for series B MRPS, as calculated in accordance with the 1940 Act, was in excess of 200%, which is the minimum asset coverage level required by the 1940 Act with respect to preferred stock.