MARC Affirms Rating of Cagamas MBS’ Sukuk Musharakah at AAAis with Stable Outlook

Malaysian Rating Corporation (MARC) has affirmed the AAAis rating of Cagamas MBS’ asset backed Sukuk Musharakah issuances (CMBS 2005-1; CMBS 2007-1-i), with a Stable Outlook.

These affirmed ratings and Outlook are backed by a solid collateral pool for the issuances. Both these Sukuk are supported by a pool of Government Staff Islamic Home Financing (GSIHF) Although there’s a likelihood of defaults due to the effects of the COVID-19 pandemic, the threat of defaults of the collateral pool is projected to remain low, driven by the mortgage payment system by monthly salary or pension deductions.

CMBS 2005-1’s collateral pool efficiency remains high, backed by a history...