Malaysian Rating Corporation Berhad (MARC) has assigned a long-term rating of AAA to the RM600 million reopening of the existing 2-year Fixed Rate Bonds, RM375 million reopening of the existing 3-year Fixed Rate Bonds, RM400 million reopening of the existing 4-year Fixed Rate Bonds and 250 million reopening of the existing 5-year Fixed Rate Bonds issued on 6 October 2000. (Earlier tranches of the 2 and 3-year Bonds were issued on 16 and 18 August 2000, bearing coupon rates of 4.518% and 4.894% respectively, and the 4 and 5-year Bonds were issued on 3 August, 2000 bearing coupon rates of 5.054%p.a. and 5.302% p.a. respectively.) The Bonds carry average coupon rates of 4.292% p.a., 4.784%p.a., 5.132%p.a. and 5.399% p.a. respectively. The 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 Bonds issued on 6 October, 2000 rank pari passu among themselves and with all other existing unsubordinated and unsecured obligations of the Company.