Net Debt To Assessed Valuation
In a municipal bond issue, a ratio measuring the value of the municipality's net debt compared to the specified value of the real property being purchased as assessed for tax purposes. Investopedia Says:
This is one of the factors which determines the quality of a municipal bond issue. The lower a municipality's debt is relative to the assessed value of its property, the less risky its bonds are deemed to be, since there is less risk of the government being unable to finance repayment of the bond issue. Related Terms:
Assessed Value
Assessor
Bond Rating
Default Risk
Municipal Bond
Net Debt
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