Now Bucksbaum will hike his company's debtratio from 56% to 70% and drive down its interest coverage (earnings before interest, taxes, depreciation and amortization divided by interest) from two to 1.6 times.
To put some figures around the issue, the ratings agency notes a debt to EBITDA ratio of 23, which has swelled from just 2 times earnings a year ago, and interest coverage down to 0.6 times from 3.7 times.