Successful bankers understand the metrics impacting the valuation and will often stress these metrics to ensure that the borrower has an ongoing ability to
cover debt service requirements.
Earlier on April 18, 1MDB said it had fully repaid all of its bank and short - term debt and noted that it still had a cash surplus of 2.3 billion ringgit ($ 589 million)
for debt service requirements and other means.
We must ensure rental income on new units stays at a level that generates excess cash flow to be more than solvent when considering
new debt service requirements.
The upward trend in debt servicing is clearer in the lower line in the graph, which shows
the debt servicing requirement specifically for housing debt.