MARC Ratings has affirmed its AAAIS rating on Cagamas MBS Berhad’s RM2,110.0 million asset-backed Sukuk Musyarakah issuance (CMBS 2007-1-i) with a stable outlook.
The rating reflects the strong credit enhancement provided by the securitised assets — government staff house financing serviced through monthly salary or pension deductions — and the accumulated cash flows backing CMBS 2007-1-i, which exceeded 3.29x as of 31 July 2025, and are sufficient to cover all remaining principal and profit payments due by the final redemption date of 28 May 2027. Accumulated cash flows are reinvested in permitted low-risk investments in line with the issuance’s terms and conditions.
The issuer may redeem the final RM290.0 million tranche early only if (i) prepayment cash flows exceed forecasts and/or (ii) the securitised assets’ outstanding principal falls below 10% (currently 13.1%). Neither condition has been met.