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KINIBIZ International rating agency Moody’s Investors Service has affirmed the government bond and issuer ratings of the Malaysian government and said that the outlook remains positive.

In a statement today, Moody’s said that the key drivers of the decision are as follows:

  • The government’s intention to adhere to its policy of deficit reduction, driven by fiscal reforms that have already bolstered the government’s resilience to cyclical commodity price shocks; and
  • The resistance of Malaysia’s fundamental credit strengths - notably macroeconomic stability, domestic capital market depth, and a favorable government debt structure - to a more adverse external economic environment, lower oil prices, and global financial market volatility.
“When Moody’s last revised the sovereign’s outlook in November 2013, Moody’s noted greater prospects for fiscal reform and the stabilisation of the government’s debt dynamics, against the backdrop of continued macroeconomic stability in the face of external headwinds.

“While we have seen ongoing fiscal deficit reduction and actual implementation of significant reform, the external challenges faced by the country have risen. Consequently, Moody’s has affirmed Malaysia at A3 and maintains a positive outlook on the rating,” the ratings agency said.

For the full story go to KiniBiz .

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