[RAM] RAM Ratings affirms Zamarad's Tranche 2, 3, 5, 8, 9 and 10 sukuk ratings

RAM Ratings has affirmed the ratings of all rated classes under Zamarad Assets Berhad’s Tranche 2, 3, 5, 8, 9 and 10 Sukuk Murabahah (see table).



Zamarad is a special-purpose vehicle incorporated to undertake the securitisation of personal financing (PF) facilities extended to civil servants, originated through the business partners of RCE Marketing Sdn Bhd.

The rating affirmations reflect the underlying receivables’ favourable default and prepayment performances relative to our assumptions, which continue to provide adequate credit support, commensurate with the respective issue ratings of all tranches under review. 

Zamarad’s Tranche 2 and 3 Sukuk are already fully cash-backed while Tranche 5 Sukuk is on track to becoming fully cash-backed by 1Q 2027. For Tranches 8, 9 and 10, which feature a Revolving Option, we expect the utilisation of excess cash reserves for the purchase of new receivables, if any, to at least preserve required credit support for the respective AAA and AA2 ratings of the Class A and Class B Sukuk, in line with the transaction terms.

During the review period, the default performances of the securitised portfolios (except for Tranche 8) were largely within expectations despite some volatility. Tranche 8 recorded a higher average monthly net default rate of 0.16% over the past 12 months and an average of 0.10% since issuance, above our assumption of 0.09%. The elevated defaults were primarily due to increased incidences of bankruptcies, early retirements, and deaths. Encouragingly, these trends have gradually improved since January 2025. Considering the non-discretionary salary deductions through which the PF facilities are repaid and the low civil service attrition rate, default and delinquency levels are expected to remain stable. 

Prepayment rates across all tranches stayed within our high and low scenarios. However, earlier issued tranches continue to exhibit elevated prepayments due to seasoning. In contrast, prepayments for Tranches 8, 9 and 10 have trended closer to the lower end of our prepayment assumptions. As prepayments are typically event-driven and tend to rise as the underlying PF contracts mature, we anticipate a gradual increase in prepayment activity, particularly given impending civil servant salary adjustments in January 2026. 


Analytical contacts
Tan Yan Choong
(603) 2708 8256
yanchoong@ram.com.my

Lim Chern Yit
(603) 2708 8302
chernyit@ram.com.my

Media contact
Sakinah Arifin
(603) 2708 8212
sakinah@ram.com.my