这道题怎么理解

问题如下：

The outstanding bonds of Mojofon contain a covenant that requires its EBITDA/Interest coverage ratio to be above 3.0. Based on coverage ratio analysis, Mojofon most likely:

选项：

has improved its coverage ratio.

is in breach of this bond covenant.

has lower credit risk than its peers.

解释：

The correct answer is B.

EBITDA/Interest coverage for Mojofon for the current year = 20/8 = 2.5. The corresponding ratio for the prior year = 27/5 = 5.4. Therefore, Mojofon’s coverage ratio has deteriorated, and the company has breached its coverage ratio covenant (>= 3.0). On the other hand, EBITDA/Interest among its peers = 55/10 = 5.5, which is much better than that of Mojofon. Based on coverage ratio analysis, Mojofon has higher, not lower, credit risk than its peers.