The company said, "As previously announced, the Company indefinitely suspended its quarterly cash distribution as a result of not meeting the required fixed charge coverage ratio
contained in the senior unsecured notes due 2020.
Key rating drivers that could lead to an upgrade of MetLife's ratings include NAIC risk-based capital ratio above 450%, a Fitch Prism capital model scored well into the 'Very Strong' category, financial leverage below 25%, and GAAP fixed charge coverage ratio
RAM Ratings said the REIT's strong operating cashflow of above RM400 million annually, together with superior coverage ratios as demonstrated by its fixed charge coverage ratio
and funds from operations financing coverage ratio of 7.49 times and 0.38 times, respectively, were among the highest compared to peers.
Also, the fixed charge coverage ratio
was reduced by 25 basis points to 1.50 times; and the initial maturity date was extended three years from August 2018 to September 2021, with a one-year extension option at the company's election.
incurrence test (of 2.5x fixed charge coverage ratio
The company said that the revisions would add clarity and enhance calculation of the Fixed Charge Coverage Ratio
. A full list of changes is available with the company.
Given the large number of ratios provided in the list, users might find some unfamiliar ones, such as the fixed charge coverage ratio
, which summarizes fixed financing commitments, including lease and interest payments.
* Make sure that the fixed charge coverage ratio
is about 1.50.
The obligation to provide, and the amount of, deposits required would be based upon a matrix measuring, on a quarterly basis, both a fixed charge coverage ratio
and unrestricted cash of Air Canada.
Rating improvements will most likely reflect success in strengthening the property portfolio's profitability and competitiveness, while operating at a fixed charge coverage ratio
of at least 2.5x, effe ctive leverage of below 50 percent and maintaining--if not improving--its unencumbered pool of assets, according to Moody's.
As part of the amended agreement, the lenders agreed to a waiver of the Company's previously disclosed non-compliance with the senior leverage and fixed charge coverage ratio
requirements under its existing Credit Agreement.