debt service ratio

Also found in: Acronyms.

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.

debt service ratio

The ratio of debt payments to disposable income; used in evaluating one's eligibility for a mortgage loan. National averages, calculated quarterly for every year since 1980, are provided at the Web site of the Federal Reserve Board, housedebt/default.htm.

References in periodicals archive ?
Table--1 Indonesia's economic indicators (US$ million) Year Total debt GDP on Foreign Exports of current exchange goods prices reserves and services 2006 132,633 369,351 42,586 122,493 2007 141,180 438,329 56,920 140,772 2008 155,080 515,557 51,639 165,796 2009 172,871 544,350 66,105 141,963 2010 202,413 713,705 96,207 184,301 2011 210,080 746,257 105,709 195,654 *) *) estimate based on data until March 2011 Source: Bank Indonesia Table--2 Indonesia's foreign debt ratios and DSR Year Debt to GDP Debt to Export Debt Service Ratio Ratio Ratio *) 2006 35.
In addition, the debt service ratio, already significantly lower than the others within the narrow sample, essentially becomes a non-factor with the broader sample.
where GNP and DEBT denote gross national product and external debt service ratios respectively.
Among other things, such waiver and amendment agreements: (i) waive covenant violations included in each term loan agreement relating to accounting records and the delivery of annual financial statements; (ii) increase the time period for delivery of a copy of its annual financial statements from 90 days to 120 days after each fiscal year-end; (iii) extend the date for compliance with the stated debt service ratio from HEI's fiscal quarter ended February 28, 2005, to its fiscal quarter ended February 28, 2006; (iv) increase the interest rate to be paid under HEI's promissory note with Commerce Bank beginning on March 1, 2005, to and including October 31, 2006, from 6.
CCCS said when the debt service ratio was high people had less money available to buy goods and services.
An often-used summary measure of household debt is the household debt service ratio (formerly known as the household debt service burden), which the Board of Governors of the Federal Reserve System first published in 1980.
The debt service ratio has remained at a level of 11%, while principal payments plus short-term debt represent only 23% of foreign exchange reserves.
The government is reluctant to take on more debt and has pledged to reverse spending patterns, so, the debt service ratio should decline below 7% of GDP in future years compared with 12.
The target of sustainability was defined as a range of 200-250 percent for the PV/foreign exchange earnings ratio and 20-25 percent for debt service ratio.
A second measure is the debt service ratio, which expresses the payments on the debt (debt service) as a percentage of the annual value of exports of goods and services of a country.
He says that the debt service ratio has gone down, that before it was 40 percent on export earnings, and now it is down to less than 20 percent.