Net Debt To Estimated Valuation


DEFINITION of 'Net Debt To Estimated Valuation'

A ratio comparing the net value of a municipal bond issue to the estimated market value of the property secured by the debt. This ratio can differ significantly from a municipal bond's net debt to assessed valuation if real-estate prices for the municipality's holdings incur large increases or decreases.

BREAKING DOWN 'Net Debt To Estimated Valuation'

One of the factors that determines the quality of a municipal bond issue is the lower an organization's debt is relative to the estimated market value of its property, the less risky its bonds are deemed to be since there is less risk the government would not have the ability to finance repayment of the bond issue.

  1. Real Estate

    Land plus anything on it, including buildings and natural resources.
  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. 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 To Assessed Valuation

    In a municipal bond issue, a ratio measuring the value of the ...
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