Friday, May 25, 2001
Malaysian Rating Corporation Berhad (MARC) has assigned a short-term rating of MARC-1 to Cagamas Berhad’s RM525 million of 1-month and RM330 million of 3-month (discount) Notes issued on 23 May, 2001. The 1-month and 3-month Notes carry an average discount rate of 2.708% and 2.824% p.a. respectively. The Notes 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. These Notes 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 Notes issued on 23 May, 2001 rank pari passu among themselves and with all other existing unsubordinated and unsecured obligations of the Company.
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 Notes issued on 23 May, 2001 rank pari passu among themselves and with all other existing unsubordinated and unsecured obligations of the Company.