DSCR


Also found in: Acronyms.

DSCR

Debt-Service Coverage Ratio

1. In investment real estate, the ratio of annual net operating income on a piece of investment property to its annual debt service. Banks use the DSCR to help determine whether to make or refinance loans for investment property. A DSCR equal to or greater than 1 indicates that the debtor is able to service the debt on the income from the investment property. In personal finance, banks usually require a DSCR of at least 1 to make such a loan, while they generally expect a ratio of 1.2 for commercial projects.

2. In government finance, the ratio of annual export earnings to its annual debt service on external debt.
References in periodicals archive ?
Since 1999, SSA long-term contracts have also resulted in DSCR inventory savings of $72.
For example, suppliers become better educated on the procurement regulations to which DSCR must adhere.
DSCR has been a consistent and dependable supplier of quality goods and services to those defending freedom around the world since it was activated in 1942.