easy · Private Credit underwriting-credit-analysis
What is the primary risk identified when a borrower's Interest Coverage Ratio (ICR) is 1.1x?
- A minor decline in EBITDA could leave the company unable to meet interest payments.
- The lender is not earning a sufficiently high interest spread on the loan.
- The company is holding too much idle, unused cash on its balance sheet right now.
- The company is over-capitalized and should return excess capital back to its shareholders.
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