Net Debt To Assessed Valuation

AAA

DEFINITION of 'Net Debt To Assessed Valuation'

In a municipal bond issue, a ratio measuring the value of the municipality's net debt compared to the specified value of the real property being purchased as assessed for tax purposes.

INVESTOPEDIA EXPLAINS 'Net Debt To Assessed Valuation'

This is one of the factors which determines the quality of a municipal bond issue. The lower a municipality's debt is relative to the assessed value of its property, the less risky its bonds are deemed to be, since there is less risk of the government being unable to finance repayment of the bond issue.

RELATED TERMS
  1. Real Estate

    Land plus anything permanently fixed to it, including buildings, ...
  2. Assessed Value

    The dollar value assigned to a property for purposes of measuring ...
  3. Assessor

    A local government official who determines the value of a property ...
  4. Default Risk

    The event in which companies or individuals will be unable to ...
  5. Bond Rating

    A grade given to bonds that indicates their credit quality. Private ...
  6. Municipal Bond

    A debt security issued by a state, municipality or county to ...
Related Articles
  1. The Basics Of Municipal Bonds
    Bonds & Fixed Income

    The Basics Of Municipal Bonds

  2. Weighing The Tax Benefits Of Municipal ...
    Taxes

    Weighing The Tax Benefits Of Municipal ...

  3. What You Need To Know About Preferred ...
    Trading Strategies

    What You Need To Know About Preferred ...

  4. Understanding The Bond Behemoth That ...
    Mutual Funds & ETFs

    Understanding The Bond Behemoth That ...

comments powered by Disqus
Hot Definitions
  1. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  2. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  3. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  4. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  5. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  6. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
Trading Center