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 Glossary   >   I   >   "Interest coverage test" Definition   

        Interest coverage test

A debt limitation that prohibits the issuance of additional long-term debt if the issuers interest coverage would, as a result of the issue, fall below some specified minimum.

Interest coverage test


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Interest coverage test - A debt limitation that prohibits the issuance of additional long-term debt if the issuers interest coverage would, as a result of the issue, fall below some specified minimum.


Interest coverage test : a debt limitation that prohibits the issuance of additional long-term debt if the issuers interest coverage would, as a result of the issue, fall below some specified minimum.