In 2022 annual report COF reported an interest coverage ratio of...

In 2022 annual report COF reported an interest coverage ratio of 6.3 times compared to a covenant of 2.0. There will be some tricks and traps in recalculating this but unfortunately, the interest rate assumption of 5.5% brings COF so much closer to the covenant. I get it to around 2.5 actual based on the above simplifications (eg 5.5% all year, no rent increase).

So still room to move but you can see how the rapid pace of interest rate increases is causing a fair amount of panic in the market. Like the market, I gyrate into optimism at any indication the inflation issue will be solved quickly without significant further increases!