Credit Analysis for Government Issuers Flashcards
1
Q
What is “sovereign immunity”?
A
A principle limiting the legal recourse of bondholders holding national government debt from forcing the issuer to declare bankruptcy or liquidate assets to settle debt claims.
2
Q
What are “General Obligation” (GO) Bonds?
A
Unsecured bonds issued by a non-sovereign government, which are backed by the taxing authority of the issuer.
3
Q
What is “Debt Service Coverage Ratio”?
A
The ratio of project revenue available to cover interest and principal payments to debt service used as a measure of creditworthiness for revenue bonds.
