RAM Ratings affirms AAA/Stable ratings of Cagamas MBS’s CMBS 2005-2, CMBS 2007-1-i and CMBS 2007-2

Published on 23 May 2024.

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RAM Ratings has affirmed the AAA/Stable ratings of Cagamas MBS Berhad’s residential mortgage-backed securities (CMBS 2005-2, CMBS 2007-1-i and CMBS 2007-2). 

Cagamas MBS is a limited-purpose entity incorporated to securitise government staff housing loans and government staff Islamic home financing facilities provided by Lembaga Pembiayaan Perumahan Sektor Awam (LPPSA), a statutory body responsible for managing public sector housing financing facilities. These facilities are repaid through non-discretionary direct deductions from civil servant salaries and pensions, reducing exposure to the borrowers’ credit risks.



The rating actions reflect the fully cash-backed position of the issuances. Supported by better than assumed loss performances, the accumulated cash reserves adequately cover all outstanding principal and remaining coupon or profit obligations up to the maturity of the last maturing tranches of the issuances in December 2025 (CMBS 2005-2), May 2027 (CMBS 2007-1-i) and August 2027 (CMBS 2007-2), respectively. 

During the review period, lower than expected average monthly prepayments were sufficiently offset by satisfactory default performances, further strengthening the asset covers, as seen in the robust overcollateralisation ratios. Overall, LPPSA demonstrated adequate servicing capabilities during the review period.


Analytical contacts
Wong Ee Loo
(603) 3385 2521

Tan Han Nee
(603) 3385 2529

Media contact
Sakinah Arifin
(603) 3385 2500


The credit rating is not a recommendation to purchase, sell or hold a security, inasmuch as it does not comment on the security’s market price or its suitability for a particular investor, nor does it involve any audit by RAM Ratings. The credit rating also does not reflect the legality and enforceability of financial obligations.

RAM Ratings receives compensation for its rating services, normally paid by the issuers of such securities or the rated entity, and sometimes third parties participating in marketing the securities, insurers, guarantors, other obligors, underwriters, etc. The receipt of this compensation has no influence on RAM Ratings’ credit opinions or other analytical processes. In all instances, RAM Ratings is committed to preserving the objectivity, integrity and independence of its ratings. Rating fees are communicated to clients prior to the issuance of rating opinions. While RAM Ratings reserves the right to disseminate the ratings, it receives no payment for doing so, except for subscriptions to its publications.

Similarly, the disclaimers above also apply to RAM Ratings’ credit-related analyses and commentaries, where relevant.

Published by RAM Rating Services Berhad
© Copyright 2024 by RAM Rating Services Berhad

Rating Rationale: CMBS 2005-2

Rating Rationale: CMBS 2007-1-i

Rating Rationale: CMBS 2007-2

Ratings on Cagamas MBS Berhad CMBS 2005-2