Removing namespaces without escaping CDATA???

I' trying to remove namespaces from a document using the following piece of code that although works, has the side-effect of escaping CDATA sections (eg. "<![CDATA[blah blah]]>"). 

How can I prevent CDATA from being escaped..?

--- Begin xsl ---
<?xml version="1.0" encoding="UTF-8"?>
<xsl:stylesheet version="1.0"
xmlns:xsl="http://www.w3.org/1999/XSL/Transform">
  <xsl:output method="xml" version="1.0" encoding="UTF-8" indent="yes"/>
    <xsl:template match="*">
      <!-- remove element prefix (if any) -->
      <xsl:element name="{local-name()}">
        <!-- process attributes -->
        <xsl:for-each select="@*">
          <!-- remove attribute prefix (if any) -->
          <xsl:attribute name="{local-name()}">
            <xsl:value-of select="."/>
          </xsl:attribute>
        </xsl:for-each>
        <xsl:apply-templates/>
      </xsl:element>
  </xsl:template>
</xsl:stylesheet>
--- End xsl ---