Borrowers will need
higher debt service coverage ratios than they did three to four years ago.
Traditional lenders, including commercial banks and insurance companies, have become strict in their underwriting criteria, demanding recourse,
high debt service coverage ratios and equity contributions of at least 35 percent.
Not exact matches
Higher loan - to - value
ratios (LTVs) are being underwritten with lower quality tenants and lower
debt service coverage ratios, as well as more interest - only loans.
To keep tabs on assets that may be facing a
higher than usual risk of default, Morningstar Credit Ratings, a Nationally Recognized Statistical Ratings Organization (NRSRO), follows a special formula that takes into account the assets»
debt service coverage ratios, loan - to - value
ratios, occupancy levels, maturity dates, tenant rollover expectations within a 12 - month period and the overall leasing conditions in the assets» metropolitan area.