date:Dec 09, 2013
m creditworthiness and solvency - and interest coverage. European food retailers are assessed particularly in terms of their lease-adjusted net debt/EBITDAR and FFO adjusted net leverage metrics. The former is based on capitalising food retailers' lease liabilities, as these companies generally rent a significant percentage of the properties they operate from. The latter assesses food retailers' cash flow after meeting operating expenses including taxes and interest to cover underlying debt and