Debt service ratio: Difference between revisions
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#''Credit rating.'' A ratio used to assess a country’s creditworthiness. | #''Credit rating.'' A ratio used to assess a country’s creditworthiness. It is the ratio of a country’s total debt service payments to its exports. | ||
It is the ratio of a country’s total debt service payments to its exports. | |||
#More generally, the ratio of any borrower's net cash inflows - before debt servicing payments - to its total debt servicing payments including principal/capital repayments as well as interest. | #More generally, the ratio of any borrower's net cash inflows - before debt servicing payments - to its total debt servicing payments including principal/capital repayments as well as interest. | ||
#A similar ratio calculated on a profit and loss account/income statement basis, rather than on a cash flow basis. | #A similar ratio calculated on a profit and loss account/income statement basis, rather than on a cash flow basis. | ||
Revision as of 15:26, 5 August 2013
- Credit rating. A ratio used to assess a country’s creditworthiness. It is the ratio of a country’s total debt service payments to its exports.
- More generally, the ratio of any borrower's net cash inflows - before debt servicing payments - to its total debt servicing payments including principal/capital repayments as well as interest.
- A similar ratio calculated on a profit and loss account/income statement basis, rather than on a cash flow basis.
Also known as the Debt service cover ratio.
