Moody's: Malaysia notes A3

Moody's Investors Service said it assigned a definitive foreign-currency rating of A3 to the securities under Malaysia's dollar-denominated sovereign sukuk.

The definitive rating for these debt obligations confirms the provisional rating assigned in June, Moody's said.

Malaysia's wakala sukuk issuance was divided into two tranches: $1.2 billion due 2016 and $800 million due 2021.

These payment obligations are pari passu with other senior, unsecured debt issuances of the government of Malaysia and thus justify a rating at the same level, Moody's said.

The Malaysian economy has grown robustly during the recovery from the global financial crisis, supported notably by healthy private consumption and government stimulus, the agency said.

The pickup in growth across the region and higher commodity prices have bolstered Malaysia's large export sector, Moody's said.

Despite headwinds from supply-chain disruptions from the March 2011 Japanese earthquake and from a moderation in Chinese demand, Malaysia's growth will continue to be supported in the near-term by domestic demand, particularly as investment spending accelerates under the government's economic transformation program, the agency said.

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