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 thus:

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