DEBT SERVICE RATIO Definition

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DEBT SERVICE RATIO is the measurement of debt payments to gross income.

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GFOA is Government Finance Officers Association.

BOND RATING is a measure of credit quality ranging from AAA to D by bond rating services such as Moody's, Standard & Poor's or Fitch's. Bonds rated BB+ or lower by Standard & Poor's or Ba1 or lower by Moody's are not investment grade.

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