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Name the most commonly used Cover Ratios in project financing?

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Question added by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies
Date Posted: 2015/04/23
Saurabh Bhatnagar
by Saurabh Bhatnagar , Assistant Manager - Finance , Bindu Urja Infrastructure Pvt. Ltd

well, I would typically look at the Debt Service Coverage Ratio, Interest Service Coverage ratio and the Fixed asset coverage ratio to see the borrower's ability to make good the debt obligations on a quarter-quarter and an annual basis as well.

 

In addition, I would also want to see the profitability ratios of the company, because if the company starts making losses, there is that much more motivation to default on the debt obligations.

Chidambaram Iyer
by Chidambaram Iyer , CFO , Bridge Services

Debt Service Cover ratio, Interest Cover ratio, Debt Equity ratio, Asset Cover ratio, Total Outside Liability to Tangible Networth

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