KUALA LUMPUR, Jan 30 – Moody’s has affirmed its A3 positive rating outlook for Malaysia, saying the outlook remains positive. Its latest decision is based on the government’s intention to adhere to its fiscal deficit reduction and the economys’s credit strengths.

By strengths, it refers to macroeconomic stability, domestic capital market depth and a favourable government debt structure — to a more adverse external economic environment, lower oil prices, and global financial market volatility. “While we have seen ongoing fiscal deficit reduction and actual implementation of significant reform, the external challenges faced by the country have risen,” it said in a statement from Singapore.

The future of the sovereign rating will depend on the effectiveness of Malaysia’s policy response in the year ahead to lower global crude oil prices and lacklusre global growth as well as the normalisation of interest by the US Federal Reserve. Moody’s also affirmed the instrument ratings on senior unsecured debt issued by Khazanah Nasional Bhd at A3.

Nation News

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