With interest rates on the rise, Moody's notes that mortgage - servicing costs are likely to climb
because nearly half
of outstanding mortgages are due for interest rate renewals within a year, adding further
strain on households»
debt - servicing capacity.
Next year will be a very important year for China
because possible
strains in the banking system and the intensity with which the reformers present their case will give us a better sense both
of how much
debt capacity the country retains and
of how well positioned Xi Jinping and his allies are to implement the needed reforms.
Those periodic special dividends are feasible
because of the firm's immaculate balance sheet, which has almost no
debt, relatively high cash levels (relative to the size
of the company and its acquisitions), and a high current ratio (i.e. the company's short - term assets cover its short - term liabilities by more than three-fold, thus protecting it from unexpected negative financial
strains, such as during recessions when demand from restaurants can lead to declining sales, earnings, and cash flow).