KINIBIZ The Big Three credit rating agencies - Fitch, Moody’s and S&P - can be extremely quick in condemning a country sovereign ratings the minute there are concerns over its financial health. But with a trail of questionable ratings and investment advice in the past, how much credence should they be actually given?

On Jan 20, 2015, Fitch rating maintained its negative outlook on Malaysia’s sovereign rating. It said its negative outlook indicates that Fitch is more likely than not to downgrade the rating of the sovereign.

Fitch said their issue was “the lack of convincing fiscal reform and over-dependence of the government on oil revenue”.

But just over a week later, Moody’s Investors Service affirmed the government’s bond and issuer ratings of the Malaysian government at A3 and said the country’s outlook remained positive.

Moody’s statement said “continued fiscal consolidation, underpinned by relatively strong economic growth and favourable funding conditions for the government, potentially supports a higher rating level”.

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This article was written by Stephanie Jacob.