Mexico limits Fibra leverage

Mexico limits Fibra leverage

Structured Finance

Debt at Mexico’s Fibra real estate trusts will be limited to 50% of total assets under new regulations finalized this week. The rules also mandate a debt service coverage ratio of at least 1, and call for certain extra transparency requirements. The new rules are positive for the industry, as it will increase confidence in the real estate trusts, say analysts at Monex. Fibra Macquarie said it had a leverage ratio of 47.7% and a debt service coverage ratio of 1.7 times under the new rules, and it

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