Malaysia may lose A- Fitch credit rating

SOE debt, declining oil prices and trouble at a sovereign wealth fund have prompted foreign investor outflows and undermined Malaysia’s economic outlook.

Malaysia is going through a rough patch, with its fiscal position weakening due to mounting debt and lower oil prices.

The Southeast Asian nation currently rated A- by Fitch has been on negative outlook since July 2013 and the probability of a rating cut over the next 12 to 18 months has risen to over 50%, said the rating agency at its Asia Sovereign Credit Briefing in Hong Kong on March 18.

Fitch expects to conduct a full review of Malaysia's ratings before the end of July 2015.

“Malaysia sits more naturally in the BBB rated category according to many structural credit fundamentals that...

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