flag_covenants: Covenant flags after computing credit ratios
In cre.dcf: Discounted Cash Flow Tools for Commercial Real Estate

flag_covenants

R Documentation

Covenant flags after computing credit ratios

Description

Adds logical indicator columns for covenant breaches based on three ratios: debt service coverage ratio (DSCR), forward loan-to-value ratio (LTV), and current debt yield.

Usage

flag_covenants(cf, cov)

Arguments

cf

A data.frame or tibble containing at least dscr, ltv_forward, and debt_yield_current.

cov

A list of covenant thresholds. Supported elements include:

dscr_min numeric, default 1.25,
ltv_max numeric in [0, 1], default 0.65,
debt_yield_min numeric, default 0.08.

Value

The input table cf enriched with logical columns cov_dscr_breach, cov_ltv_breach, and cov_dy_breach.

Examples

cf <- tibble::tibble(
  year = 1:3,
  dscr = c(1.40, 1.10, NA),
  ltv_forward = c(0.60, 0.70, 0.64),
  debt_yield_current = c(0.09, 0.07, 0.08)
)
cov <- list(dscr_min = 1.25, ltv_max = 0.65, debt_yield_min = 0.08)
flag_covenants(cf, cov)

cre.dcf documentation built on April 10, 2026, 5:08 p.m.