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. Assessed Value

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

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

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

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

    A debt security issued by a state, municipality or county to ...
  6. Net Debt

    A metric that shows a company's overall debt situation by netting ...
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. Are Equity-Indexed Annuities Right For ...
    Savings

    Are Equity-Indexed Annuities Right For ...

  4. 10 Sources Of Nontaxable Income
    Taxes

    10 Sources Of Nontaxable Income

comments powered by Disqus
Hot Definitions
  1. Last In, First Out - LIFO

    An asset-management and valuation method that assumes that assets produced or acquired last are the ones that are used, sold ...
  2. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  3. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  4. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  5. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  6. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
Trading Center