If interest coverage ratio is
greater than	≤ to	Rating is	Spread is
-100000	0.499999	D2/D	14.34%
0.5	0.799999	C2/C	10.76%
0.8	1.249999	Ca2/CC	8.80%
1.25	1.499999	Caa/CCC	7.78%
1.5	1.999999	B3/B-	4.62%
2	2.499999	B2/B	3.78%
2.5	2.999999	B1/B+	3.15%
3	3.499999	Ba2/BB	2.15%
3.5	3.9999999	Ba1/BB+	1.93%
4	4.499999	Baa2/BBB	1.59%
4.5	5.999999	A3/A-	1.29%
6	7.499999	A2/A	1.14%
7.5	9.499999	A1/A+	1.03%
9.5	12.499999	Aa2/AA	0.82%
12.5	100000	Aaa/AAA	0.67%

[1]

Aswath Damodaran:
If yes, fill in the attached worksheet on operating leases

[2]

Aswath Damodaran:
If your most recent year's operating income is unusually low or high, you can use the average operating income from the last few years.

[3]

Aswath Damodaran:
Enter the interest expense from the most recent income statement.

[4]

Aswath Damodaran:
I use a 10 year government bond rate.