What is the 'Loan Life Coverage Ratio  LLCR'
The loan life coverage ratio (LLCR) is a financial ratio used to estimate the ability of the borrowing company to repay an outstanding loan. The Loan Life Coverage Ratio (LLCR) is calculated by dividing the net present value (NPV) of the money available for debt repayment by the amount of senior debt owed by the company.
Next Up
BREAKING DOWN 'Loan Life Coverage Ratio  LLCR'
A specific value for LLCR may be preset in a loan agreement contract. This stipulation may be put in by the lender for ease in knowing that the borrower will be capable of making the required interest and principle payments, and if they don't may be subject to a penalty, usually in monetary form.
RELATED TERMS

Net Operating Income  NOI
A company's operating income after operating expenses are deducted, ... 
Lender
Someone who makes funds available to another with the expectation ... 
Credit Quality
One of the principal criteria for judging the investment quality ... 
Debt
An amount of money borrowed by one party from another. Many corporations/individuals ... 
Debtor
A company or individual who owes money. If the debt is in the ... 
Total Debt Service Ratio  TDS
A debt service measure that financial lenders use as a rule of ...
Related Articles

Credit & Loans
Check Your Credit Report
Make sure there are no errors holding you back from obtaining a loan. 
Budgeting
Mortgages: How Much Can You Afford?
Answering this means numbercrunching as well as factoring in other considerations and expenses. 
Options & Futures
Conquering The Terms Of Your Mortgage
Buyers with big down payments should get the best mortgage terms. Unfortunately, the equation isn't that simple. 
Credit & Loans
Understanding The Mortgage Payment Structure
We explain the calculation and payment process as well as the amortization schedule of home loans. 
Investing
Debt Reckoning
Learn about debt ratios and how to use them to assess a company's financial health. You could save a lot of money! 
Credit & Loans
Debt Ratios
Learn about the debt ratio, debtequity ratio, capitalization ratio, interest coverage ratio and the cash flow to debt ratio. 
Fundamental Analysis
4 Challenges China Faces According to PIMCO
Get the latest thoughts from Luke Spajic, executive vice president and portfolio manager in Singapore for PIMCO, on challenges facing China's economy. 
Markets
ReEmerging Markets?
If you're wondering when will the emerging markets comeback be? Read on because is still young, but encouraging. 
Fundamental Analysis
Alcoa vs. BHP Billiton: Which Is Better for My Portfolio?
Obtain an uptodate overview of BHP Billiton and Alcoa, Inc., two key players for investors seeking exposure to the aluminum market to consider. 
Fundamental Analysis
Value Investing: 5 Tips to Consider in 2016
Read five tips for value investors to consider in 2016, including how to look beyond traditional metrics and when to expand outside of the value zone.
RELATED FAQS

Why are credit cards able to charge such high interest rates compared to other lenders?
A true financial horror story began on Halloween in 1978. On that date, the Supreme Court began hearing Marquette National ... Read Answer >> 
When does a growth stock turn into a value opportunity?
Learn how fundamental analysts use valuation measures, such as the pricetoearnings ratio, to identify when a growth stock ... Read Answer >> 
What is the formula for calculating EBITDA?
Learn about EBITDA and how companies can manipulate this calculation to look more profitable. Read Answer >> 
How do I calculate the P/E ratio of a company?
Find out how to calculate this common valuation ratio and what the results can tell you about a company's performance. Read Answer >> 
How do you calculate return on equity (ROE)?
Return on equity (ROE) is a ratio that provides investors insight into how efficiently a company (or more specifically, its ... Read Answer >> 
How do you calculate working capital?
The formula for calculating working capital is straightforward, but lends great insight into the shorterterm health of a ... Read Answer >>