AFMF Legacy Model Series: Sovereign Risk-Adjusted Interest Coverage Ratio (A-ICR )

Abstract

This manuscript presents four sovereign-adjusted financial models originally developed under the Alaali Financial Models Framework (AFMF). These include the Sovereign Risk-Adjusted Interest Coverage Ratio (A-ICR), the Alaali Debt Coverage Sustainability Metric (A-DCSM), the Financial Stability & Investment Attractiveness Index (A-FSIAI), and the Interest Coverage Stability Index (A-ICSI). Each model integrates the Sovereign Support Adjustment Factor (SSAF), a dynamic academic algorithm designed to reflect macroeconomic volatility, sovereign credit dynamics, and discretionary policy interventions. While academically validated, all four models are now designated as legacy academic structures. SSAF has since been replaced in commercial AFMF implementations by the Alaali Sovereign Resilience Engine (A-SRE), a proprietary framework not disclosed in public documentation. This manuscript documents the original theoretical insights, preserves intellectual authorship, and serves as a foundational scholarly reference. Any structural replications or variations regardless of rebranding are considered derivative intellectual property of AFMF.

JEL Classification: G32, H63, G33, G18, M41