Project Life Coverage Ratio (PLCR)

The PLCR is the ratio of the Net Present Value of the Cash Flows Available for Debt Service (CFADS), available over the project’s remaining life, to the outstanding debt balance. This ratio is similar to the Loan Life Cover Ratio (LLCR), but in the LLCR, the CFADS is calculated over the scheduled life of the loan, whereas the cash flows for the PLCR are calculated over the project’s life.