[MARC] MARC Ratings affirms ratings on Cagamas MBS’ asset-backed Sukuk Musyarakah and fixed rate serial bonds

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

Cagamas MBS was established to undertake the securitisation of government staff housing loans/financings. The affirmed ratings and outlook reflect the fully cash-collateralised positions of CMBS 2005-2, CMBS 2007-1-i and CMBS 2007-2. Payments through monthly salary or pension deductions of government servants ensure low default risk.

The collateral pools continue to perform well, supported by the historically low cumulative default rates of the initial pool balances and high credit enhancement levels of 530.1% for CMBS 2005-2, 336.1% for CMBS 2007-1-i and 915.7% for CMBS 2007-2.

Akmal Sadiq, +603-2717 2939/ akmal@marc.com.my
Fahmi Hawari, +603-2717 2946/ fahmi@marc.com.my
Mohd Izazee Ismail, +603-2717 2947/ izazee@marc.com.my