Rating matter: A fiscal expansion due to Covid-19 is necessary to ensure stronger economic revival in 2021.
ON Dec 1, Moody’s Investors Service’s regular update note to issuer maintained Malaysia’s sovereign debt rating of A3 with stable outlook.
However, on Dec 5, Fitch Ratings downgraded our rating to BBB+ from A-, citing lingering political uncertainty that weighs on the policy outlook as well as prospects for further improvement in governance standards.
This marks Fitch’s first downgrade in 16 years since 2004 when it raised our rating to A- from BBB- in April 2004.
Rewind to June 26, S&P Global Ratings revised its outlook on Malaysia to negative while keeping A-, to reflect the additional downside risk to the government’s fiscal metrics given the weak global economic climate and heightened policy uncertainty.
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