RAM Ratings: Cagamas MBS’s Residential Mortgage-Backed Securities Reaffirmed at AAA/Stable

Cagamas MBS (Cagamas) has had two Sukuk Musharakah Islamic residential mortgage-backed securities (CMBS 2005-1 and CMBS 2007-1-i) and two residential mortgage-backed securities (CMBS 2005-2 and CMBS 2007-2) all reaffirmed as AAA with a Stable Outlook by RAM Ratings (RAM). Cagamas is a limited-purpose entity involved in securitising government staff housing loans and government staff Islamic home financing facilities. The repayment of these is based on direct deductions of the salaries and pensions of civil servants, which limits exposure to credit risks according to RAM.

The rating reaffirmations of Cagamas’ MYR 2.05 billion Sukuk (CMBS 2005-1), MYR 2.06 billion residential mortgage-backed securities (CMBS 2005-2)...