medium · Debt Capital Markets credit-ratings-risk
In a 'Ratio Debt' incurrence test, the EBITDA used in the denominator is typically based on:
- The Last Twelve Months (LTM) period, adjusted pro forma for any recent acquisitions or divestitures.
- The EBITDA from the single best quarter in the company's history.
- The average EBITDA since the company was founded.
- The projected EBITDA for the next three years.
Sign up free to see the explanation and track your rank →
More Debt Capital Markets credit-ratings-risk practice
- In the context of Debt Capital Markets, what is a leverage-based margin ratchet?
- Why is the Administrative Agent's role important for the margin ratchet?
- In Debt Capital Markets, who is generally the 'payer' of the credit spread in a standard b
- What happens to the credit spread of a 'fallen angel' issuer?
- In the expected loss framework, what is the relationship between the Recovery Rate (RR) an
- What is the lowest rating an issuer can hold and still be considered 'Investment Grade' by
- In a Credit Default Swap (CDS), what is the primary obligation of the protection seller?
- What does a 'negative basis' indicate?