The phrase "ability to pay interest" is correct and usable in written English.
It can be used in financial contexts, particularly when discussing loans, credit, or financial obligations.
Example: "Before approving your loan application, we need to assess your ability to pay interest on the borrowed amount."
Alternatives: "capacity to pay interest" or "financial capability to cover interest".
Over the past decade, as their debts have rocketed, the chaebol's ability to pay interest charges out of cashflow has fallen sharply.
But bond investors, the professional worriers of the financial markets, closely monitor debt loads and a company's ability to pay interest obligations.
Investors rarely made use of the option as long as they had confidence in Edison's ability to pay interest and principal.
Mr. Buffett, the company's most prominent bondholder, said in his annual letter that unless gas prices rose substantially, the company's ability to pay interest on its bonds would soon be exhausted.
To select issues, the managers look for a debt-to-capital ratio of 50percentt or less and a substantial interest-coverage ratio, which measures a company's ability to pay interest from its current operations.
To maintain its own credit rating, Sears must ensure that credit-losses don't cut into the company's ability to pay interest.
Since they are salable, their price fluctuates from time to time, going above maturity value when the current market interest rate falls below the interest rate that they bear and falling below the maturity value when the current rate rises or when fear about the ability of the government to pay interest develops.
Interest Coverage Ratio: The company's ability to pay the interest on its borrowings is key to its solvency.
"The Treasury secretary has the ability, even if this debt limit is not extended, to continue to pay interest on our loans.
Analysts have warned that any such bid would seriously affect Allied's ability to pay the interest on its debt.
The Bank is only talking about testing a borrower's ability to pay an interest rate of 5.5% when all tax liabilities are properly taken into account.
