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3.2.2 Debt Service Covering Ratio

To compute the Debt Service, we first compute the Debt Service Covering Ratio (DSCR) as follows:

The Debt Service in the forecast period is computed by:

where  is the 5-year moving average of the forecast revenues and  is the 5-year moving average of CFADS. The coefficients and are obtained from the DSCR equation above.

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