A senior debt service coverage ratio
above 2x could have a positive rating impact, but this would itself likely require a significant reduction in leverage.
In some cases you can ask the lender if it would consider refinancing all of your existing debt along with the new loan, which may have a positive impact on the company's operating cash flow and the debt service coverage ratio
Going forward, the Company's projected debt service coverage ratio
is expected to be kept above two times throughout the tenure of the BaIDS - well above the 1.25 times stipulated in the covenant."
A small, four-building portfolio in Upper Manhattan, purchased by Apollo and Vantage in 2007, generated so little income this year that its debt service coverage ratio
was just .14 as of September, Trepp's report said.
Other important features, such as debt service coverage ratio
and the size of original pool balance, however, were not significantly related to losses.
It has resulted in a decline in cash available to service the notes, leading to a decline in debt service coverage ratio
(DSCR) levels, which has triggered a rapid amortization event.
Median adjusted loan-to-value remained at 57 percent and the median debt service coverage ratio
also remained at 1.48.
The loan was structured as a 10-year fixed rate loan with six years of interest-only, followed by a 30-year amortization schedule and a 1.25x debt service coverage ratio
ORIX Capital Markets LLC, the master servicer, reported a weighted average debt service coverage ratio
(WADSCR) based on (net cash flow) of 1.6 times (x), based on 88.9 percent year-end 2000, and 1.8 percent year-end 1999 financial information, an improvement from the 1.35x that was reported at issuance.
As a practical matter, the sales price will be further limited by the fact that the bond market requires the facility to project a maximum annual debt service coverage ratio
on the bonds of at least 1.40 at stabilization.
Median adjusted loan-to-value decreased to 57% from 58% in December while the median debt service coverage ratio
remained at 1.47.