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Qwest Communications International says it reduced its debt after exchanging outstanding debt for new debt securities.
It also eliminated its debt.
The debt-service coverage ratio divides the company's operating income by its debt service payments.
Mr. Bleakley estimates that Allied's interest coverage, a measure of a company's ability to pay its debt, would be cut in half and fall below acceptable levels should it bid for the entire Seagram portfolio.
For a good margin of safety to make sure a company is able to satisfy interest payments on its debt, look for companies with two-to-four times interest coverage (earnings before interest at least two-to-four times interest charges).
Ford reduces its debt.
Its debt is effectively isolated.
Mexico defaulted on its debt in 1914.
Sales soared, but so did its debt.
Its debt had a high credit rating.
Its debt is 3.5 billion euros.
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