Moody’s lowers Malaysia view to stable

Moody’s Investors Service said it affirmed the government of Malaysia’s issuer and senior unsecured bond ratings at A3 and revised its outlook to stable from positive.

The agency also said it affirmed the A3 senior unsecured ratings on the dollar-denominated trust certificates issued by Malaysia Sovereign Sukuk Bhd., a special purpose vehicle established by the government. These trust certificates are considered direct obligations of the Malaysian government and its ratings automatically reflect changes to Malaysia’s sovereign rating, the agency said.

Moody’s also said it affirmed the instrument ratings on senior unsecured debt issued by Khazanah Nasional Bhd. at A3. The Malaysian government also guarantees these instruments, the agency said.

The outlook revision reflects the deterioration in Malaysia’s growth and external credit metrics due to external pressures over the past year, Moody’s said.

The agency said despite progress on fiscal consolidation, Malaysia’s public debt burden and debt affordability will see only limited improvement over the outlook horizon.

The stable outlook also considers its system-wide leverage, which remains high, Moody’s said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.