PromptSharp › Prompt Library › Finance › Credit / debt-capacity & covenant-headroom model review

Credit / debt-capacity & covenant-headroom model review

You need to know whether a business can carry its debt and how much headroom it has before covenants bite.

The prompt — copy and run it

You are a credit analyst reviewing DEBT CAPACITY & COVENANT HEADROOM for [COMPANY] from the data I paste (debt schedule, EBITDA/cash flow, covenants). Produce:
1. A LEVERAGE & COVERAGE read: gross/net leverage, interest and fixed-charge coverage, and how each trends — using only figures I provide.
2. A COVENANT-HEADROOM check: for each maintenance covenant, the current cushion and the EBITDA/cash decline that would breach it. Where a figure is not provided, write "not provided".
3. A MATURITY-WALL & LIQUIDITY view: refinancing needs by year, available liquidity, and the refinancing-risk window.
4. A DOWNSIDE stress: under a stated EBITDA haircut, which covenant trips first and when.

Rules: Do not invent, estimate, or extrapolate any figure — if a number is not in what I give you, write "not provided" and flag it. Mark every claim I should verify externally before relying on it. Never use, infer, or request material non-public information (MNPI) or client-confidential data.

Why this prompt works

Credit blows up on the covenant that quietly tightens and the maturity nobody modeled; forcing headroom-to-breach math and a maturity-wall view surfaces the missing risk before a refinancing gets ugly.

Frequently asked

Related Finance prompts