1.4.7 Debt service cover ratios
We compute 'economic' debt service cover ratios or DSCR, including all cash at bank (including any debt service reserve account). This ensures consistent computations across firms and a DSCR that genuinely represents the hard default point (DSCR=1).
Debt service cover ratios are computed as:
where,
is cash from operations
is cash from investment activities
is cash from investments (e.g. funds kept in escrow for bond-funded projects)
is cash at bank
is cash from equity and debt drawdowns