Theamountofdebt that they can incur is usuallygoverned byvariousratiossuch asFixedCharge Coverage ratios, Debt-to-EBITDA ratios, Debt-to-Capital ratios, andetc.
For cyclical properties like airlines, industrials and even hotels, fixed-charge coverage of just one (suggesting that a company's earnings are just enough to satisfy debt, lease and principal repayment over the next year) can evaporate overnight.