Moody's rating guidance for DP World's Baa3 rating and stable outlook is adjusted funds from operations (FFO) interest cover
covenant Interest Cover
Ratio (ICR) is calculated as net financing
Calculation: interest cover
(a number) is derived by dividing the company's operating profit by the finance charge.
This would, in Moody's opinion, translate into FFO interest cover
that is constantly above 3.
Net yield = (rental income - costs)/purchase price 3 Interest cover
- The difference between actual rental income (less costs) and total mortgage repayments Interest cover
= net rent / interest costs 4.
Accordingly, the estimated year-end interest cover
ratio remains well below 1 time versus the expectation that interest cover
would strengthen towards 2 times.
Borrowers' caution was backed up by the survey's data on interest cover
( how many times debt is divisible into revenue ( which showed this ratio falling across all real estate sectors but particularly in the secondary industrial and office markets.
The fact Ahold had negotiated lower interest cover
than expected on the loan was seen as evidence more accounting revelations could be around the corner, while its decision to waive a dividend was "not encouraging".
with the result that the if sector's interest cover
has continued to drop back and, at 7.
Debt leverage is expected to remain below 25%, with interest cover
at least 6 times (x)-8x.
Fitch expects MAF's EBIT (MAFP rental-derived EBIT and dividends received from MAF Retail LLC (MAFR)) net interest cover
to remain strong, at about 3x in 2012.