Malaysian Rating Corporation Berhad (MARC) has assigned a short-term rating of MARC-1 to the RM750 million of 3-month Cagamas (discount) Notes and a long-term rating of AAA to the RM144 million 4-year Sanadat Mudharabah Cagamas (SMC) and RM187 million reopening of the existing 4-year Fixed Rate Bonds issued on 9 and 10 November, 2000. (An earlier tranche of 4-year Bonds was issued on 3 August, 2000 bearing a coupon rate of 5.054% p.a.) The Notes carry an average discount rate of 2.957% p.a., the SMC has an expected required return of 4.80% p.a. while the Bonds carry an average yield of 4.914% p.a.. The Notes and Bonds 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 Bonds 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 and Bonds issued on 9 and 10 November, 2000 rank pari passu among themselves and with all other existing unsubordinated and unsecured obligations of the Company.