Fitch's mixed signals on Malaysia confounding

Singapore

RATING agencies, often slammed for harshly judging sovereigns' credit worth and exacerbating their financial woes, may have a heart after all.

After setting the stage over months for a cut in Malaysia's debt rating which in its own words was "more than 50 per cent likely", Fitch Ratings appeared to have had a major change of heart.

Late Tuesday night, the UK and US-based rating firm left Malaysia's debt rating unchanged at A minus, much to the surprise of market watchers and providing a huge relief to the country's policymakers.

But the shocker given its…