Moody’s af­firms gov­ern­ment debt rat­ings at A3

The Star Malaysia - StarBiz - - News -

KUALA LUMPUR: Moody’s In­vestors Ser­vice has af­firmed the gov­ern­ment’s lo­cal and for­eign cur­rency is­suer and se­nior un­se­cured debt rat­ings at A3. The out­look re­mains sta­ble.

Moody’s said the sta­ble out­look bal­ances credit con­straints from low debt af­ford­abil­ity and a high debt bur­den against in­her­ent credit strengths, in­clud­ing re­silient eco­nomic growth and a sta­ble and broad fund­ing base for the coun­try’s debt.

Rel­a­tive sta­bil­ity in fi­nanc­ing con­di­tions in a weaker global en­vi­ron­ment also un­der­pins the sta­ble out­look at A3.

Moody’s has also af­firmed the backed se­nior un­se­cured US dol­lar trust cer­tifi­cates is­sued by Malaysia Sov­er­eign Sukuk Bhd and the backed se­nior un­se­cured debt is­sued by Malaysia Sukuk Global Bhd, spe­cial-pur­pose ve­hi­cles es­tab­lished by the gov­ern­ment, at A3.

Moody’s has also af­firmed the lo­cal cur­rency rat­ings on the backed se­nior un­se­cured debt is­sued by Khaz­anah Na­sional Bhd at A3. The gov­ern­ment guar­an­tees these in­stru­ments.

Malaysia’s long-term for­eign cur­rency (FC) bond ceil­ing is un­changed at A1 and its long- term FC de­posit ceil­ing is A3. Malaysia’s short-term FC bond and de­posit ceil­ings are also un­changed at Prime-1 and Prime-2 re­spec­tively.

These ceil­ings act as a cap on rat­ings that can be as­signed to the FC obli­ga­tions of en­ti­ties other than the gov­ern­ment that are domi­ciled in the coun­try.

The long-term lo­cal cur­rency (LC) bond and de­posit coun­try ceil­ings are un­changed at A1.

Moody’s said fur­ther fis­cal deficit re­duc­tion would be in­creas­ingly dif­fi­cult and the debt bur­den will stay for longer.

Newspapers in English

Newspapers from Malaysia

© PressReader. All rights reserved.