Debt-service coverage ratio

(redirected from Debt Service Ratios)

Debt-service coverage ratio

Earnings before interest and income taxes, divided by interest expense plus the quantity of principal repayments divided by one minus the tax rate.

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 ?
The ratings also reflect the city's high liquidity buffer limiting new borrowings, moderate direct debt levels and manageable debt service ratios.
Caption: Figure 3: Interest and Principal Components of Debt Service Ratios
Tenders are invited for most qualified consulting firm to assist the city in achieving sustainable water and wastewater rate structures that: adequately fund operations, debt service, and capital improvements; meet debt service ratios and bond covenant requirements; and ensure that water and sewer fund is operating on a self-sustaining basis over the next 20 years.
This is not our core view, however, as debt service ratios remain manageable at current levels.
External debt service ratios are also well below the peer median.
A loss of fiscal discipline leading to a continued and sustained increase in debt and debt service ratios and limited potential that Manitoba will return to a balanced budget and will stabilize its debt burden in the medium term could result in a deterioration of its current credit profile.
Finding that debt and debt service ratios of the government are at "comfortable" levels, the IMF said a major part of the amortisation of the government's external debt falls was due after 2017.
On the other hand, the ratings could be upgraded if the city has the ability to prop up its operating performance and debt service ratios to the average levels seen in 2006-2008.
The mortgage company offers flexible mortgages with a wide range of benefits, including loan-to-value ratios of up to 85 per cent, loan terms of between 3 and 30 years, flexible repayment methods and debt service ratios of up to 55 per cent.
Abu Dhabi Finance launched in 2008 with a capital of Dh500 million, offers mortgages with a wide range of benefits, including loan-to-value ratios of up to 85 per cent, loan terms of between three and 30 years, flexible repayment methods and debt service ratios of up to 55 per cent.
It offers mortgages with a wide range of benefits, including loan-to-value ratios of up to 85 per cent, flexible repayment methods and debt service ratios of up to 55 per cent.
With interest rates still near historic lows, actual floating-rate debt service ratios (DSCRs) remain generally strong--even in cases where a loan's collateral performance may have fallen, reflecting operating issues, S & P said.