Calculating Total Direct and Indirect Debt

Answered by:

Question:

In calculating total direct and indirect debt, isn't a limited guaranty counted at the percent it is limited to?

Answer:

I believe this may depend on the purpose of the new loan, any government guarantees on it, and the lenders policy addressing contingent liability. It may also include analysis of the debt and its payment record combined with the financial health and outlook of the entity servicing the debt.