Ratings remain dependent on maintaining low gearing levels and sound debt coverage ratios
given sizeable plans over the rating horizon.
Pro forma debt coverage ratios
will be weaker than pre-disposal (both FFO interest coverage and EBITDA/interest expense will likely be just below 2x) but Algeco's debt service capacity is materially supported by the availability of unrestricted cash balances.
That could eventually weaken debt coverage ratios
and cash flows for tax credit properties.
Under the NAIC methodology, individual mortgage ratings are based on debt coverage ratios
, LTV and property type metrics.
Additionally, the company's new facility replaces its earlier USD15m secured revolving credit facility and contains some typical financial and other covenants and also, the company's ability to borrow under this facility is subject to compliance with the covenants and other restrictions on an ongoing basis, with the principle covenants limiting its level of debt and debt coverage ratios
The closest company in terms of business scale and debt coverage ratios
is TNK-BP, yet its credit quality looks even slightly worse due to occasional conflicts between key shareholders.
Lenders are back to industry norms in terms of loan-to-value and debt coverage ratios
. The wild card is appraisals.
impact on SOCAR's leverage profile and debt coverage ratios
. On a
If the region reinforces its debt coverage ratios
and trim refinancing risk by extending its debt maturity profile, the agency may upgrade the ratings.
Thirdly, a company must pay holders of debt an interest rate, even if the company is loss-making--and failure to pay interest or to achieve debt coverage ratios
may put the company into default and force a liquidation.
Cash debt coverage ratios
of AM Corporation show that 27.4% of the total debts (current and long-term debts) could be covered in 2004 and 33.5% of the total debts in 2006, while in 2005 and 2007 the company did not appear to be able to pay any of its creditors using cash from operations alone.