Malaysian Rating Corporation Berhad (MARC) has assigned a short-term rating of MARC-1 to the RM1,600 million of 3-month Cagamas (discount) Notes and the RM110 million of 1-year Cagamas (discount) Notes, which carry an average discount rate of 2.909% p.a. and 3.122% p.a. respectively. MARC also assigned a long-term rating of AAA to the RM200 million reopening of the existing 2-year Fixed Rate Bonds (an earlier tranche of 2-year Bonds was issued on 16 May, 2000 bearing a coupon rate of 4.023% p.a.) and the RM312 million 3-year Fixed Rate Bonds issued on 20 and 21 July, 2000. The Bonds carry an average coupon rate of 3.814% p.a. and 4.369% 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. 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 20 and 21 July, 2000 rank pari passu among themselves and with all other existing unsubordinated and unsecured obligations of the Company.