I’m calculating additional bonds test (ABT) coverage of maximum annual debt service (MADS). Should the coverage ratio be Revenues/MADS or Net Revenues/MADS. Net revenues (which takes out O&M costs) makes more sense to me. Thoughts?
I’m calculating additional bonds test (ABT) coverage of maximum annual debt service (MADS). Should the coverage ratio be Revenues/MADS or Net Revenues/MADS. Net revenues (which takes out O&M costs) makes more sense to me. Thoughts?