The most popular credit indicators are –
For long term debt:
Leverage ratios: Debt / Equity, Debt / Total Capital, Debt / EBITDA,
Coverage ratios: Interest Coverage (very important), fixed charge coverage, Debt Service Coverage Ratio (also called DSCR – very important)
Others: Loan to Value Ratio
Debt to equity, Debt to Total Assets, Debt to EBITDA,, and debt service coverage ratio (DSCR).
For short term debt (cash credit, working capital loans etc.):
Liquidity ratios: Current, Quick and Cash Ratio
Other Measures include: Credit Rating Grading Table for Global Agencies / ratings under Investment Grade vs Non-Investment Grade
