Asset Coverage Ratio

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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 ratios, as calculated in accordance with Fitch total and net overcollateralization tests (Fitch OC tests) per the 'AAA' rating guidelines for the senior notes and the 'AA' rating guidelines for the MRPS, outlined in Fitch's closed-end fund criteria, were in excess of 100%, which is the minimum asset coverage required by the fund's governing documents.
Kayne Anderson MLP Investment company (NYSE: KYN) has provided a summary unaudited statement of assets and liabilities and announced its net asset value and asset coverage ratios under the Investment company Act of 1940 (the "1940 Act") as of August 31, 2017, the company said.
NYSE: KYE) today provided a summary unaudited balance sheet and announced its net asset value and asset coverage ratios under the Investment Company Act of 1940 as of October 31, 2011.
The company chief financial officer, Terry Matlack, said, 'We are taking steps to comply with our asset coverage ratios for the purposes of both the 1940 Act and the terms of our senior notes and preferred shares.
The fund does not adhere to explicit minimum credit quality guidelines, although material negative credit migration would result in the fund breaching its asset coverage ratios and therefore require the fund to rebalance the portfolio or deleverage to restore appropriate asset coverage.
The funds' asset coverage ratios for the preferred shares, as calculated in accordance with the Investment Company Act of 1940, were in excess of the minimum threshold of 225% required by the VMTP governing documents (Preferred Shares Asset Coverage Test).
At the time of the issuance of series C senior unsecured notes, the fund's asset coverage ratios, 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.
25%, depending on asset coverage ratios and as per current asset coverage ratios, the interest rate would be equal to the one-month LIBOR plus 1.
At the time of the rating affirmations of the senior unsecured notes, the fund's asset coverage ratios, 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 with respect to debt.
50%, as per current asset coverage ratios and this may even vary between LIBOR plus 1.
As of the same date, the fund's asset coverage ratios, as calculated in accordance with the Fitch total and net overcollateralization tests (Fitch OC tests) per the 'AAA' rating guidelines outlined in Fitch's applicable criteria, were in excess of 100%, which is the minimum asset coverage amount deemed consistent with an 'AAA' rating.
At the time of the rating affirmations of the series A and B notes, the fund's asset coverage ratios, 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.