Malaysia ratings upgrade now more likely, says ANZ

KUALA LUMPUR – ANZ Bank says Malaysia’s fiscal fundamentals are improving markedly, and that a ratings upgrade has now become more likely in the foreseeable future.

“There should be no doubt that the combined impact of dismantling fuel subsidies and the April 2015 introduction of a consumption tax are both developments that will bring surety to the structural nature of Malaysia’s fiscal improvement,” ANZ says.
“Fitch has Malaysia on negative watch and we believe this assessment needs to be revised. Moody’s has Malaysia on positive outlook and these developments suggest the positive outlook should be acted upon.”