Debt service ratio

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Revision as of 15:25, 5 August 2013 by imported>Doug Williamson (Spacing and numbering)
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  1. 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.

  1. 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.
  2. 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.

See also