Malaysian Rating Corporation Berhad (MARC) has assigned a short-term rating of MARC-1 to Cagamas Berhad’s RM170 million one year (discount) Notes and a long-term rating of AAA to the RM100 million 2-year Fixed Rate Bonds and RM150 million reopening of the existing 3-year Fixed Rate Bonds issued on 16 May, 2000. (An earlier tranche of the 3-year Bonds was issued on 14 April, 2000 bearing a coupon rate of 4.766% p.a.). The Notes carry an average discount rate of 3.179% p.a., while the average coupon rate for the 2-year and 3-year are 4.023% p.a. and 4.627% p.a. respectively. 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. These Notes and 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 16 May, 2000 rank pari passu among themselves and with all other existing unsubordinated and unsecured obligations of the Company.