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 ?
Once credits are placed in one of these categories, a more favorable evaluation is not applied until the country has demonstrated a sustained ability to service its debts in an orderly manner.
The question is: if a property is doing so poorly that it can't service its debt properly, from where does all the tax liability arise?
The rating on the bonds matches the long-term creditworthiness of the issuer, which speaks of its strong capacity to service its debt obligations.
The Ugandan central bank has said that the national economy needs to grow by 7 percent in order to help the nation service its debts, Reuters has reported.
The loss-making telco deferred the maturity date of the Murabaha Facility for another 21 days, leading to speculation about its ability to service its debts.
The company failed on several occasions to service its debts on time, hence the low rating, CRISIL said.
Even though Congress has approved an unpopular package of salary and pension cuts, indications that tax revenues continue to be low have analysts concerned that Argentina will not be able to service its debts. Analysts say there appears to be little sign the economy will recover in the short term, even if the government succeeds in fully implementing its reforms.
The society failed on several occasions to service its debts on time due to its weak liquidity, which explains the low rating.
The consistent delays of the company to service its debts have led the low rating, the agency explained.
The company consistently fails to service its debts on time, which prompted the move, the agency said.
The institute had difficulties to service its debts on time which was the main reason for the downgrade, the agency said.

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