Debt service ratio
From ACT Wiki
Revision as of 05:57, 18 June 2016 by Doug Williamson (Layout.)
- 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.