debt service

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Debt service

Interest payment plus repayments of principal to creditors (retirement of debt).
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Debt Service

The amount of money required to make payments on the principal and interest on outstanding loans, the interest on bonds, or the principal of maturing bonds. An individual or company unable to make such payments is said to be "unable to service one's debt." An example of debt service is a monthly student loan payment. See also: Debt service coverage ratio.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

debt service

Funds required to meet interest expenses, principal payments, and sinking fund requirements during a specific time period. A firm's ability to service its debt is estimated by comparing cash flow with debt service.
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.

debt service

The amount necessary to make principal and interest payments on a loan.It does not include amounts collected each month as a reserve for insurance or real estate taxes and does not include payments for private mortgage insurance.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
One noteworthy piece of information in the discovery evidence showed that Terminella told Metropolitan's Washington County president, Larry Olson, that he had "carried" his partners to the tune of $4 million during the 2006 real estate downturn rather than ask them to service debt.
It also analyzes the impact of revenue shortfalls due to the inability to service debt, particularly in communities where customers have relocated and the system is inoperable.
That's because events could affect non-operational cash requirements such as investments, credit ratings and the ability to service debt, as well as inventory, payables and receivables.
Since the lowest capitalization rates are observed for rent-regulated apartments, loans for acquisitions of other commercial property types have proven to be attractive due to their ability to service debt payments.
The prime cause of the increasing unease and debate over the prospect of deflation in the US is the growing worry about the inability to service debt. You can see the worry in the Fed's insistence that a deflationary collapse cannot happen.
Additionally, commercial property owners have reported premiums for their insurance policies have increased by 40 to 300 percent, and that lender underwriting guidelines will be reflective of the increased risk associated with insurance policies reducing property income available to service debt.
The Central Bank put out a series of new bonds worth $500 million in order to service debt payments and other costs, reflecting the scarcity of credit the Argentine government faces.
The cost of capital may be higher for stock companies, based on the need to pay dividends and service debt.
-- The government will set aside 4.5 trillion yen to service debt for stabilizing the domestic financial system.
Overlending: A facility must be able to service debt from its internal cash flow.
The credit raters believe Endesa's USD1.45 billion (Euro 1.22 billion) bid for Enersis is likely to result in an increase in the group's consolidated debt, reduced financial flexibility, less capacity to service debt, and greater exposure to the volatility of Latin American markets.
At the previous meeting in New York last week, Indonesia and 13 major commercial banks agreed on plans to provide Indonesian companies in debt with protection against exchange rate risks and to ensure the availability of foreign exchange needed to service debt.

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