per capita debt(redirected from Per Capita Debts)
Per capita debt
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
Per Capita Debt
The amount of municipal debt divided by the number of persons in that municipality. Because most municipal bonds are guaranteed in some way by the municipality tax revenue, the number of taxpayers in that municipality is important in determining its ability to repay the bonds. As a result, credit ratings agencies use per capita debt in rating municipal bonds.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
per capita debt
The total debt of a municipality divided by the municipality's population. Financial analysts use per capita debt when evaluating a municipality's ability to repay its debt.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.