Published on 24 December 2013
RAM Ratings has reaffirmed the AAA/Stable rating of Cagamas MBS
Berhad’s RM1,555 million residential mortgage-backed securities (the Bonds),
i.e. Series 4 of CMBS 2004-1. The rating reflects the full collateralisation of
the Bonds.
As at 28 February 2013, the transaction was fully collateralised
by cash and had sufficient cash reserves (including permitted investments) to
promptly meet coupons payments as well as the ultimate redemption of the Bonds
by their maturity, i.e. 20 October 2014. Based on our cashflow assessment, the
RM409.95 million of available cash in Collection Account 2004-1 (including
permitted investments) will be able to cover the RM345 million of outstanding
Bonds and approximately RM19 million of coupon obligations throughout their
remaining tenure under an ”AAA” stress scenario. This is reflected in the Bonds’
overcollateralisation level of 135.81%, which commensurates with an AAA rating.
Cagamas MBS is a limited-purpose entity incorporated on 8 June
2004, specifically for the purpose of purchasing government staff housing loans
(GSHLs) and government staff Islamic financing schemes from the Government of
Malaysia, and to issue securities to fund such purchases. CMBS 2004-1
represents the first issuance by Cagamas MBS and is secured by a static
portfolio of GSHLs that are serviced via monthly deductions from the pensions
of retired public-sector employees. All sums collected from the monthly
deductions on pension payments are remitted on a quarterly basis to Collections
Account 2004-1.
Media contact
Tan Han Nee
(603) 7628 1023
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