RAM Ratings affirms Cagamas' ratings

RAM Ratings has affirmed Cagamas Berhad's (Cagamas or the Company) corporate credit and issue ratings as shown below. 

                           Cagamas Berhad	                                                Rating (Rating Action)
- Corporate Credit Ratings                                                                     AAA/Stable/P1 (Affirmed)
- RM60 billion Islamic and Conventional MTN Programmes (2007/2067)                              AAA/Stable (Affirmed)                       
- RM20 billion Islamic and Conventional Commercial Papers Programmes (2023/2030)                    P1 (Affirmed)
- RM80 billion Islamic and Conventional MTN Programmes (2025/-)	                                AAA/Stable (Affirmed)

The affirmations reflect Cagamas' robust credit metrics, supported by its prudent and conservative business practices. Despite an uncertain operating environment and the potentially higher risk from its business plans, the Company's credit fundamentals are expected to remain resilient. As Malaysia's national mortgage corporation, Cagamas plays a strategic role within the domestic financial system as a liquidity provider. It is one of the largest domestic issuers of corporate bonds and sukuk. Based on RAM's rating methodology for government-linked entities, the ratings incorporate a high likelihood of government support in the event of financial distress.

Cagamas primarily acquires loans/financing assets from financial institutions, the Government of Malaysia and selected corporations on a purchase with recourse (PWR) or purchase without recourse (PWOR) basis. In 1H FY Dec 2025, PWR purchases rose sharply to RM12.9 bil (1H FY Dec 2024: RM4.5 bil) amid market volatility, translating into a 8.9% growth in gross receivables to RM47.5 bil. Notwithstanding cuts in the Statutory Reserve Requirement and overnight policy rate, liquidity demand remains strong and is expected to pick up in Q4. PWR purchases are on