Moody's: Malaysia's Rating Outlook is Stable

by CFO Innovation Asia Staff, 08 June 2012

0 comments

Facebook

Digg

Twitter

topics:
Metrics

tags:
capital markets Moody's Investors Service Ratings Outlook sovereign rating

Thumbnail:

Moody's Investors Service says the outlook for Malaysia's A3 sovereign rating is stable.

A Moody's credit analysis states that Malaysia's A3 sovereign rating is anchored by resilient growth, a strong external position, and deep and liquid domestic capital markets that assure favorable financing conditions.

The country's financial system and strong corporate sector contribute to the country's net international investment surplus.

These advantages have ensured the "finance-ability" and "affordability" of Malaysia's large fiscal deficits and higher government debt relative to its peers.

The stable outlook is supported by recent trends in economic performance, as well as the initial gains from the government's efforts at structural reform.

Malaysia's credit profile would be further enhanced by fiscal reforms that address weaknesses in both revenues and expenditures.

Moody's also expects political pressures due to the impending parliamentary elections to be reasonably managed.

The report notes that the trade channel as the likely source of transmission of the euro area crisis to the Malaysian economy.

The sound and liquid position of Malaysia's banking system mutes contagion risk from the financial channel, should euro area banks deleverage.

Also, capital market depth and the large buffer of foreign exchange reserves guard against a disruptive reversal of non-resident accumulation of Malaysian government debt.

MORE ARTICLES ON SOVEREIGN RATING

Orignal Author:

CFO Innovation Asia Staff

Quote Image:

Comment on this article

Your name: *

E-mail: *

The content of this field is kept private and will not be shown publicly.

Homepage:

Comment: *

Web page addresses and e-mail addresses turn into links automatically.
Allowed HTML tags: <a> <em> <strong> <cite> <code> <ul> <ol> <li> <dl> <dt> <dd> <a> <p> <span> <div> <h1> <h2> <h3> <h4> <h5> <h6> <img> <img /> <map> <area> <hr> <br> <br /> <ul> <ol> <li> <dl> <dt> <dd> <table> <tr> <td> <em> <b> <u> <i> <strong> <font> <del> <ins> <sub> <sup> <quote> <blockquote> <pre> <address> <code> <cite> <embed> <object> <strike> <caption>
Lines and paragraphs break automatically.
Use  to create page breaks.

More information about formatting options

Verification Code

This question is for testing whether you are a human visitor and to prevent automated spam submissions.

What is the fourth word in the phrase "aboxu esoba oha ejinus susevi"?: *

Accounting and Regulations

CFO innovation Asia Accounting and Regulation the Asia Pacific resource center for senior finance executives, daily news, analysis, best practice and case studies in Accounting Regulation, IFRS, US GAAP, Tax, investor relations, corporate governance, Corporate Law, Financial Regulators, Internal Audit, Audit, Corporate Law.

Auditing, Investor Relations, Law and Compliance, Tax

Finance and Banking

CFO innovation Asia, Finance and Banking the Asia Pacific resource center for senior finance executives, daily news, analysis, best practice and case studies in Corporate Finance, trade finance, treasury and risk management, capital expenditure, Banking, mergers and acquisitions

Cash and Liquidity Management, Corporate Finance, Insurance, Treasury Management

Management

CFO innovation Asia the Asia Pacific resource center for senior finance executives, daily news, analysis, best practice and case studies in Finance Management, Corporate Governance, Human Resource Management, Compensation and Benefits, Mergers and Acquisitions, Professional Development, Corporate Real Estate, Risk Management, Budgeting and Forecasting, Business Process Management, Business Process Reengineering, Outsourcing.

Budgeting and Planning, Business Expense Management, Human Capital Management, Outsourcing and Shared Services, Risk Management

Metrics

Corporates, Financial Services

Technology

CFO innovation Asia Technology the Asia Pacific resource center for senior finance executives, daily news, analysis, best practice and case studies in Finance Systems, Business Intelligence, EPR, Accounting software, CRM, Cloud Computing, Telecommunications, Business Process Outsourcing, Business Process Management Software.

Business Intelligence, Enterprise Software and Systems, Financial Systems, Security