MARC: MALAYSIA’S GDP TO HIT 5.3pc THIS YEAR

KUALA LUMPUR: Malaysian Rating Corp Bhd (MARC) expects corporate credit outlook to be stable with moderate downside risks this year.

MARC chief economist Nor Zahidi Alias said the stable outlook was supported by the steady pace of economic growth that would support businesses and consumer sentiments.

The outlook also considers the beneficial spillover from infrastructure projects to construction and construction-related firms.

“Corporates are expected to record positive earnings growth this year while corporate leverage is set to remain at moderate level,” he said at a briefing yesterday.

Nor Zahidi said the outlook for property sector would continue to be challenging on slow sales, especially in the high-end segment.

He said the occupancy levels and rental rates in the office and retail segments had come under increasing pressure as supply continued to outstrip demand.