[RAM] RAM Ratings affirms AAA/Stable ratings of Cagamas MBS's CMBS 2005-2, CMBS 2007-1-i and CMBS 2007-2
RAM Ratings has affirmed the AAA/Stable ratings of Cagamas MBS Berhad’s residential mortgage-backed securities (CMBS 2005-2, CMBS 2007-1-i and CMBS 2007-2).
Cagamas MBS is a limited-purpose entity incorporated to securitise government staff housing loans and government staff Islamic home financing facilities provided by Lembaga Pembiayaan Perumahan Sektor Awam (LPPSA), a statutory body responsible for managing public sector housing financing facilities. These facilities are repaid through non-discretionary direct deductions from civil servant salaries and pensions, reducing exposure to the borrowers’ credit risks.
The rating actions reflect the fully cash-backed position of the issuances. Supported by better than assumed loss performances, the accumulated cash reserves adequately cover all outstanding principal and remaining coupon or profit obligations up to the maturity of the last maturing tranches of the issuances in December 2025 (CMBS 2005-2), May 2027 (CMBS 2007-1-i) and August 2027 (CMBS 2007-2), respectively.
During the review period, lower than expected average monthly prepayments were sufficiently offset by satisfactory default performances, further strengthening the asset covers, as seen in the robust overcollateralisation ratios. Overall, LPPSA demonstrated adequate servicing capabilities during the review period.
Analytical contacts
Wong Ee Loo
(603) 3385 2521
eeloo@ram.com.my
Tan Han Nee
(603) 3385 2529
hannee@ram.com.my
Media contact
Sakinah Arifin
(603) 3385 2500
sakinah@ram.com.my