KUALA LUMPUR – Fitch Ratings’ upward revision of Malaysia’s outlook to stable, is indeed a reflection of the government’s financial management and economic policies, says Prime Minister Datuk Seri Najib Tun Razak.
“I am pleased that Fitch, the international ratings agency, has maintained Malaysia’s credit rating and revised our outlook upwards to stable,” he said in his latest Facebook and Twitter posting.
Fitch Ratings affirmed the country’s long-term foreign currency issuer default rating (IDR) at ‘A-‘ and local currency IDR at ‘A’.
The issue ratings on Malaysia’s senior unsecured local currency bonds were also affirmed at ‘A’.
The outlook on the long-term IDRs was revised to stable from negative.
In rating Malaysia, Fitch said the country’s fiscal finances were improving since last year with the general government deficit declining from 4.6 per cent of Gross Domestic Product (GDP) in 2013 to 3.8 per cent for 2014.
General government debt, meanwhile, declined vis-a-vis the GDP from 54.7 per cent at end-2013 to 53.9 per cent at end-2014.
Fitch said it viewed the progress on the Goods and Services Tax and fuel subsidy reform as supportive of fiscal finances.
A further narrowing of the deficit is forecast this year despite lower oil prices.
It noted that the depth of Malaysia’s local capital markets supported the sovereign’s domestic financing needs.