1MDB today trumpeted Fitch's Rating's upgrade of the country's economic outlook despite claims that the Finance Ministry-owned company was weighing down the economy.

1MDB president and group executive officer Arul Kanda said Fitch Rating was briefed by 1MDB about its challenges prior to the upgrade.

"In relation to 1MDB, we had conversations with Fitch in advance of the upgrade, in which we discussed the company's current situation and provided confidence on the measures being taken.

"We were open about the challenges we face, outlined our efforts to reduce the company's debt as presented in our rationalisation plan, and provided information on the various actions that have already been taken including the repayment of a RM3.6 billion loan in June," he said in a statement today.

The upgrade by Fitch Rating came as a relief as economic sentiments had been weak due to an anticipated downgrade.

'Commendable job'

Prior to Fitch's revision, 1MDB's massive RM41.8 billion debt was partly blamed for the weak economic sentiments on top of shrinking revenue due to a fall in global oil prices.

Arul said the upgrade from 'negative' to 'stable' was a recognition of Malaysia's growing economic strength.

"Furthermore, the upgrade is evidence of the government's success in ensuring the continued economic stability of our country.

"The Ministry of Finance and Bank Negara in particular have done a commendable job in highlighting the positives of our economic success story," he said.

Even though Fitch upgraded the country's outlook, it still noted concerns about 1MDB.

"Fitch thinks there is a high probability that sovereign support for 1MDB would be forthcoming if needed," it said.

The ratings agency also noted that the federal government's debt and explicit guarantees continued to increase.