Fitch says may downgrade Malaysia rating in upcoming review
[KUALA LUMPUR] Credit ratings agency Fitch said on Tuesday that it would review Malaysia's rating in the first half of 2015 and that it may downgrade the sovereign.
"The Negative outlook indicates that Fitch is more likely than not to downgrade the rating of the sovereign," Sagarika Chandra, an associate director of S&P, said in a statement issued by the rating agency.
The agency viewed the government's revision of its fiscal deficit target to 3.2 per cent of the gross domestic product (GDP) as evidence that "dependence on commodities remains a key credit weakness for Malaysia".
In its note, Fitch said that Malaysia's "credit profile remains vulnerable to sharp movements in commodity prices" and that "further measures might be required" for the country to meet its target of a balanced budget by 2020. Prime Minister Najib Razak made a budget revision on Tuesday to reflect falling oil prices and a weakened ringgit.
REUTERS
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
Putin plans to meet Xi in China days after his new term starts
Biden vetoes bid to repeal US labour board rule on contract, franchise workers
Economic leaders of South Korea, Japan, China say FX volatility is a risk
US automakers win extension on use of Chinese graphite in EV tax credits
US service sector contracts in April; price pressures up
Thaksin’s daughter calls central bank independence an ‘obstacle’