Fitch Ratings has affirmed Malaysia’s long-term foreign- and local-currency issuer default ratings (IDRs) at ‘A-’ with stable outlook, reflecting the country’s strong net external creditor position.

The credit ratings agency said the real gross domestic product (GDP) growth also remained stronger than the median of ‘A’ rated peers and a current account that was still in surplus although it had been narrowing.

“The economy continues to slow and Fitch forecasts real GDP growth of four percent in 2016, down from five per cent last year.

“However, on average real GDP growth still remains stronger than the ‘A’ median,” it said, adding that private consumption demand and continued spending on strategic projects by the government and state-owned enterprises would boost growth.

This will counter some of the downside pressures from weak external demand, the credit ratings agency noted.

Fitch pointed out that continued fiscal consolidation had supported stabilisation in the federal government debt and deficit ratios.

Meanwhile, it also affirmed Malaysia’s senior unsecured foreign- and local-currency bonds at ‘A-’ and ‘F1', while the short-term local-currency IDR at F1.

- Bernama