The phrase "ability to pay back" is correct and usable in written English.
It can be used in contexts related to finance, loans, or debts, where one discusses someone's capacity to repay borrowed money.
Example: "Before approving the loan, the bank assessed the applicant's ability to pay back the amount within the stipulated time frame."
Alternatives: "capacity to repay" or "repayment capability".
Determination of ability to pay back the loan is based on the fully amortized payment, not the interest-only payment.
It also an indication of investors' confidence in the country's ability to pay back any future loans.
When a developing country's currency loses value rapidly, it impedes the ability to pay back loans from Western banks.
Companies with junk credit ratings have been increasingly issuing bonds for riskier purposes that could hinder their ability to pay back bondholders.
The ability to pay back after university has no bearing on your parental income, but instead on the education you received and your employment status as an adult.
The losses that Wilpon has sustained as a result of the Madoff fraud case could hamper his ability to pay back debt related to that buyout.
The ratings on Prudential's ability to pay back loans and to cover its policies have been falling over the last few years.
The decision by Moody's, which grades countries' abilities to pay back money and therefore impacts on borrowing costs, will have negligible effect on the UK's economy, only threatening consumers by making the pound a little weaker.
As investors gained confidence in the ability of countries to pay back debt, the cost of insuring debt fell in Greece and across the Continent.
To be sure, most observers say the ripples in the repo market will not be anything like those felt in the fall of 2008, when creditors lost faith in the ability of banks to pay back their short-term loans.
It contributed to a significant extent to the increased sensitivity that investors now have regarding the ability of sovereign countries to pay back their debts, especially in Europe.
