A ratio comparing the net value of a municipal bond issue to the estimated market value of the property secured by the debt. This ratio can differ significantly from a municipal bond's net debt to assessed valuation if real-estate prices for the municipality's holdings incur large increases or decreases. 
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One of the factors that determines the quality of a municipal bond issue is the lower an organization's debt is relative to the estimated market value of its property, the less risky its bonds are deemed to be since there is less risk the government would not have the ability to finance repayment of the bond issue.