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debt service

   Also found in: Financial, Acronyms 0.01 sec.
debt service noun carrying cost, charge, cost of the loan, obligation, overhead payment, repayment
Associated concepts: bankruptcy, fraudulent debt, interrogation, solvency, usury


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The 'AA' rating and Stable Rating Outlook reflect the diversity, low credit risk, and security on loans within the Maine HHEFA loan pool, a debt service reserve funded at maximum annual debt service (MADS) and backed by the state's moral obligation, a state-aid intercept mechanism to assure loan repayments, and a supplemental operating fund that can be utilized so any delinquent loan payments do not cause a draw on the debt service reserve.
The 'AA-' rating reflects steady system demand, low customer rates, a flexible capital program due to few regulatory compliance issues and adequate debt service coverage.
 
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