Companies debt covenants may require revisions after implementing the new leasing standard because

the new leasing standard requires a grossing up of assets and liabilities on companies balance sheets.

most companies will experience an increase in the interest coverage ratio as a result of the new standard.

previous standards meant using only note disclosures to determine lease obligations resulting in overstating their numerical impact.

most companies will experience a decrease in the debt to equity ratio as a result of the new standard.