CMBS Debt Service Coverage Ratio

Debt Service Coverage Ratio (DSCR) in Relation to CMBS Loans

Debt Service Coverage Ratio (DSCR) in Relation to CMBS Loans

Debt Service Coverage Ratio, or DSCR, is one of the key metrics that lenders use when determining a borrower’s eligibility for a CMBS loan. DSCR can be calculated by dividing a property’s net operating income (NOI), with its annual debt service (including principal, interest, taxes, and related costs).