[RAM] Cagamas MBS fully redeems CMBS 2005-2 ahead of maturity

RAM Ratings has received confirmation that Cagamas MBS Berhad (CMBS) fully redeemed its outstanding RM265 mil Residential Mortgage-Backed Securities 2005-2 (CMBS 2005-2) on 12 March 2025, ahead of the scheduled maturity date of 12 December 2025. CMBS 2005-2, the AAA/Stable rating of which was last published on 23 May 2024 (click here), was fully cash-backed.

As with CMBS 2007-2 which was redeemed early on 24 February 2025, the redemption of CMBS 2005-2 followed the fulfilment of the transaction’s optional redemption condition, which allows early repayment when the outstanding balance of the securitised assets falls to or below 10% of the initial principal balance at issuance. Consequently, we have withdrawn the rating of CMBS 2005-2 and no longer have any rating obligation in respect of this facility. 

CMBS is a limited-purpose entity established to securitise government staff housing loans and government staff Islamic home financing facilities provided by Lembaga Pembiayaan Perumahan Sektor Awam, a statutory body managing public sector housing financing facilities. These facilities are repaid via non-discretionary direct deductions from civil servant salaries and pensions, mitigating exposure to borrower credit risk.


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