Debt leverage

Debt leverage

Amplification of the return earned on equity when an investment or firm is financed partially with borrowed money.
References in periodicals archive ?
Key among these enhancements is an improved debt leverage ratio, higher working capital amounts, profit margins and substantially higher earnings per share.
The ratings and Outlook reflect TEP's high debt leverage, covenants in the utility's bank facilities that restrict debt-leverage relative to EBITDA and prospective mortgage debt issuance and the need for amendments to its bank facilities in 2008 to comply with the debt-leverage ratio covenant included therein.
Based on its high post-LBO debt leverage, Fitch expects KMI's senior unsecured debt (to be equally secured with the buyout debt) to fall in the 'BB' rating category.
Factors that could result in negative ratings actions for TXU, Energy, US Holdings, and Delivery include increased debt leverage relative to normalized cash flow from operations, or adverse regulatory or competitive developments.
At the same time, Brasil Ferrovias and its subsidiaries' credit quality should benefit from the acquisition as ALL's stronger financial position will result in lower consolidated debt leverage for the acquired companies.
Debt leverage (as measured by debt to cash flow) in particular is expected to remain weak for the rating category over the next several years as incremental capital expenditures are financed with debt before equity is issued and tariffs are adjusted.
To maintain its current debt leverage, UNM plans to reduce its outstanding debt by an amount equal to the debt issuance during the first quarter of 2006 by participating in the remarketing of its adjusted conversion rate equity units in February 2006.
Ceres Group has substantially reduced debt leverage, and therefore debt service costs, in recent years.
Fitch will continue to monitor developments related to the sale as well as RRI's overall progress in achieving its stated goals for reducing debt leverage in the coming years.
Fitch believes that the completion of this transaction will secure liquidity to meet the company's short-term debt obligations, but that its effect on Vitro's financial structure and debt leverage will be limited.
The company indicates that post-transaction debt leverage will approximate 56%, and debt-to-EBITDA will approximate 4.