Ratios
Credit ratio formulas and worked examples
8 pages
Formulas, worked examples and limits for the credit ratios used by bank desks.
Debt yield calculator for CRE underwriting
Debt yield calculator for CRE: NOI divided by loan amount, with formula, inputs, worked example and limits versus DSCR and LTV.
DSCR calculator for project and CRE lending
DSCR calculator for bank desks: formula, inputs, worked example and limits for debt service coverage in project finance and CRE.
DSRA sizing illustrator for bank desks
DSRA sizing illustrator: target debt service reserve from months of debt service, with inputs, worked example and interpretation limits.
Interest coverage calculator for CRE and PF
Interest coverage calculator: income versus interest costs for CRE and project finance, with formula, inputs, example and limits.
LLCR calculator for project finance cover
LLCR calculator for project finance: NPV of CFADS over loan life versus outstanding debt, with inputs, example and interpretation limits.
LTC calculator for CRE construction lending
LTC calculator for CRE construction: loan to cost formula, equity inputs, worked example and limits versus LTV and cash-flow tests.
LTV calculator for commercial real estate
LTV calculator for CRE desks: loan to value formula, inputs, worked example, supervisory context and interpretation limits.
OECD CRC explainer for ECA premium floors
How OECD country risk categories 0 to 7 map to Arrangement minimum premium floors, with the desk mapping inputs and a worked illustration.