Malaysian Rating Corporation Berhad (MARC) has assigned a long-term rating of AAA to the RM50 million 7-year Sanadat Mudharabah Cagamas (SMC), issued on 26 February 2002. The 7-year SMC carry an average yield of 4.48% p.a.. The SMC are issued to fund the purchase of mortgage loans from financial institutions, corporations and the Government, in addition to purchases of industrial property loans and hire purchase and leasing debts from the financial institutions. The SMC qualify as liquid assets for financial institutions, and are regarded as low risk assets for the purposes of s.46(2) of the Insurance Act 1996.

Cagamas’ rating is underpinned by its exceptionally strong ability to meet existing financial obligations and the distinctly superior quality of its portfolio of mortgages and Islamic house financing debts, purchased with full recourse to the primary lenders. Additional strengths include the company’s strict adherence to its exhaustive operational guidelines, prudent asset and liability management policies, strong earnings capacity and shareholder support.

The aforementioned SMC issued on 26 February, 2002 rank pari passu among themselves and with all other existing unsecured obligations of the Company.