Jun 18 2012
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MARC affirms its AAAIS rating on Cagamas MBS Berhad's RM2,110 million asset-backed Sukuk Musyarakah issuance (CMBS 2007-1-i)
Cagamas MBS is a limited purpose entity and a wholly-owned subsidiary of Cagamas Holdings Berhad (Cagamas Holdings) whose principal activities are restricted to securitising Islamic home financing and conventional housing loans of public sector employees originated by the Government of Malaysia (GOM). The collateral backing this transaction is Portfolio 2007-1-i, a pool of eligible Government Staff Islamic Home Financings (GSIHFs) on which monthly home financing instalments are made via direct salary/pension deductions. The GOM's Housing Loans Division, or Bahagian Pinjaman Perumahan (BPP), is the servicer of Portfolio 2007-1-i.
Based on the servicer's quarterly report for CMBS 2007-1-i dated February 28, 2012 (the reporting date), the outstanding principal of the collateral pool totalled RM2,001.39 million, representing 24,591 fixed-rate home financings with an average size of RM81,387 and a weighted term to maturity of 16.53 years. The weighted average seasoning of the collateral pool was 7.6 years. As of the same date, the home financing portfolio's cumulative default rate registered at 0.46% versus MARC's expected cumulative default rate of 1.83%. The majority of the RM11.59 million in defaults (home financing amounts in arrears for more than 9 months) under the transactions have been the result of data reconciliation lags and delays in salary and/or pension deductions due to changes in the employment status of government staff. Meanwhile, the collateral pool's cumulative prepayment rate of 4.42% remained within MARC's range of stressed prepayment assumptions.
MARC's stable outlook for CMBS 2007-1-i is premised on stable performance of the transaction's collateral pool and its high overcollateralisation ratio, which offers ample protection against default and prepayment risk.
[This announcement is available in the MARC corporate homepage at http://www.marc.com.my]
This communication is provided by Malaysian Rating Corporation Berhad (MARC) on the basis of information believed by MARC to be accurate and reliable as derived from publicly available sources or provided by the rated entity or its agents. MARC, however, has not independently verified such information and makes no representation as to the accuracy or completeness of such information. Any assignment of a credit rating by MARC is solely to be construed as a statement of its opinion and not a statement of fact. A credit rating is not a recommendation to buy, sell, or hold any security.
© Press Release 2012
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