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dosagggio
che ne pervada la fattiva partecipazione
Feb 2, 2013 10:01
11 yrs ago
6 viewers *
Italian term

rapporto di copertura

Italian to English Bus/Financial Finance (general) A court doc on a special purpose entity
"il rapporto di copertura assicurato dalle attività finanziarie sulle passività è rimasto sostanzialmente stabile: 1,105 milioni di Euro nel 2005 e 1,150 milioni di Euro nel 2006"
The document discusses the solvency of an SPV. This just doesn't make any sense at all to me.
1) Total assets are about five billion, so figures of only one million are totally insignificant (those are definitely commas in the Italian court stamped document).
2) All I can imagine for this "rapporto di copertura" is either an "L’indice di copertura delle immobilizzazioni" which is non-current assets to non-current liabilities plus equity, similar to a debt asset ratio or an "indice di liquidità" which is a liquidity ratio. Of course neither of these makes sense here because these are ratios.
Anybody got any input on this. Am I right in thinking the author made a careless mistake by writing 'milioni di Euro' ?
Proposed translations (English)
3 Asset Coverage Ratio
4 debt service coverage ratio (DSCR)

Discussion

James (Jim) Davis (asker) Feb 3, 2013:
Thanks Cristiana This one is driving me mad. Can't ring the judge and ask!
CristianaC Feb 3, 2013:
Hi Jim sorry I cannot help. Rapporto may have been used loosely to indicate a difference, as Paola mentioned ..but I have no idea whether those numbers make any sense at all
James (Jim) Davis (asker) Feb 2, 2013:
Hi Paola I think it might be something like a debt to asset ratio. Equity is 120 million and assets and liabilities are just over four billion. In this context a figure of 1,105 milioni di Euro (i.e. in English €1,105,000) is too small to have any meaning. I don't think the error is a comma for a dot, but even so, there is nothing on the balance sheet to indicate that with around four billion of bond debt and around four billion of intercompany loans on the assets side accounting for most of the balance sheet.
paoladt (X) Feb 2, 2013:
forse... il "careless mistake" sta nell'uso del termine "rapporto". magari vuole semplicemente dire la differenza tra le attivita e le passività. difficile dirlo senza maggiori dati. cmq mi sembra che il link indicato da Alison, a giudicare dai criteri di calcolo, non c'entri molto

Proposed translations

1 hr
Selected

Asset Coverage Ratio

Hello Jim,
Could this be the term you're looking for?
More a shot in the dark than anything else.
Check:
http://www.investopedia.com/terms/a/assetcoverage.asp#axzz2J...

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Note added at 7 days (2013-02-09 14:40:26 GMT) Post-grading
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Would it be the first time that you found a hugely significant error in an official document written in Italian? I don't think you are crazy. I know, because I live here, that much of what happens here is....
Note from asker:
Thanks for the input Cedric. It is probably something very similar. I think the only way to get a handle on it is to assume the figures are numbers and not euro and do some backward engineering on them to find out what they refer to in the balance sheet.
I live here too Cedric. To be honest, in many years of translating financial reports I've never found a hugely significant error in one. By the time they get to me they have either already been audited or are ready for the auditor. Perhaps that is why this court document threw me. The forty odd pages I did contained about four significant mistakes, but strangely no small mistakes like missing commas or mispellings.
Something went wrong...
4 KudoZ points awarded for this answer. Comment: "I think you get the points Cedric. It was in fact pretty close to this. Of course what I really wanted was an answer to the question "Am I right in thinking the author made a careless mistake by writing 'milioni di Euro' ?" Or am I going mad?"
25 mins

debt service coverage ratio (DSCR)

If I have read the sentence correctly this means the company can generate enough cash to cover its debts, interest, principal, etc.

See: http://en.wikipedia.org/wiki/Debt_service_coverage_ratio

Alison

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Note added at 1 hr (2013-02-02 11:08:19 GMT)
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See the link I have given for a definition of this ratio. This could be just "careless" legal" writing - in one breath talking about the coverage ratio and then expressing this in monetary terms. Here, they are soley talking about financial assets covering liabilities (are these total liabilities or just financial liabilities?) You will have to work this out. Otherwise, add a comment to the text expressing your query. On a final note, "rapporto" is a ratio" in my understanding and "copertura" can mean coverage or hedge. Hope this helps - Alison
Note from asker:
Hi Alison. Hi Alison, my real question is can you confirm that there is a careless mistake in the Italian. You cannot have a ratio of one million euro. Do you have a link to the equivalent "indice" for this in italian. The next line says cash was insufficient to pay maturing bonds, so the ratio would be below one, while from the summary balance sheet that I have, the ratio of non-current assets to non-current liabilities plus equity is just above one.
Thanks for the input. Total assets are five billion. So a monetary figure of one million doesn't make sense, not even for a quick or current ratio. This will be one of a number of notes. Another is a "million" instead of a "billion". This is the "motivi" for a "sentenza", which while it criticises the auditors, is itself full of material mistatements.
Thanks Alison
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