Marc affirms ratings on Cagamas MBS' asset-backed sukuk Musyarakah and fixed rate serial bonds

Cagamas MBS is a wholly-owned special purpose vehicle of Cagamas Holdings Berhad and was established to undertake the securitisation of conventional and Islamic home financing originated by the Malaysian government

  

MARC has affirmed its AAAIS and AAA ratings on Cagamas MBS Berhad’s (Cagamas MBS) asset-backed Sukuk Musyarakah issuances (CMBS 2007-1-i) and fixed rate serial bonds issuances (CMBS 2005-2; CMBS 2007-2). The outlook on all ratings is stable.

Cagamas MBS is a wholly-owned special purpose vehicle of Cagamas Holdings Berhad and was established to undertake the securitisation of conventional and Islamic home financing originated by the Malaysian government. The affirmed ratings and outlook reflect the very strong credit enhancement levels and very low default risk of the collateral pools as they are underpinned by a mortgage payment mechanism which involves the deduction of monthly salaries or pensions of government servants.

CMBS 2007-1-i is backed by a pool of government staff Islamic home financing while CMBS        2005-2 and CMBS 2007-2 are backed by a pool of government staff housing loans. The performance of the collateral pools has remained strong, supported by the historically low cumulative default rates of the initial pool balances. For CMBS 2007-1-i, its repayment of the next tranche of RM320.0 million is on May 27, 2022 whereas for CMBS 2005-2, its next and final redemption of RM265.0 million is due on December 12, 2025. For CMBS 2007-2, the next redemption of RM250.0 million is due on August 22, 2022. The rating agency notes that each the of three portfolios has a healthy liquidity position to meet its respective repayment.

-Ends-

Contacts:
Haziq Najmuddin, +603-2717 2965/ haziq@marc.com.my;
Mohd Izazee Ismail, +603-2717 2947/ izazee@marc.com.my 

[This announcement is available on MARC’s corporate website at www.marc.com.my ]

--- DISCLAIMER ---

This communication is provided by Malaysian Rating Corporation Berhad (MARC) based on 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.

© 2021 Malaysian Rating Corporation Berhad
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