MARC Ratings has affirmed its AAA_IS and AAA ratings on Cagamas MBS Berhad’s asset-backed Sukuk Musyarakah issuance (CMBS 2007-1-i) and fixed rate serial bonds issuances (CMBS 2005-2; CMBS 2007-2). The outlook on all ratings is stable. 

Cagamas MBS was established to undertake the securitisation of conventional and Islamic home financing originated by the Malaysian government. The affirmed ratings and outlook reflect the fully cash-collateralised position of CMBS 2005-2 and CMBS 2007-2, as well as CMBS 2007-1-i’s sustained high credit enhancement level, among other key factors. 

MARC Ratings notes that Portfolio CMBS 2005-2 and Portfolio CMBS 2007-2’s accumulated cash and permitted investments of RM769.1 million and RM759.6 million, are more than sufficient to cover the respective outstanding issuance amounts of RM265.0 million and RM355.0 million. CMBS 2005-2’s final redemption is due on December 12, 2025, whereas CMBS 2007-2’s Tranche 6 and Tranche 7 maturity dates are August 22, 2022, and August 20, 2027. 

For CMBS 2007-1-i, its cash balances of RM489.6 million are sufficient to meet its next redemption of RM320.0 million due on May 27, 2022. The performance of the collateral pools has remained strong, supported by the historically low cumulative default rates of the initial pool balances. 

Fahmi Hawari, +603-2717 2946/ fahmi@marc.com.my 

Haziq Najmuddin, +603-2717 2965/ haziq@marc.com.my  

Mohd Izazee Ismail, +603-2717 2947/ izazee@marc.com.my