S&P affirms Malaysia’s currency ratings, outlook stable

KUALA LUMPUR - Standard & Poor's Ratings Services has affirmed its 'A-' long-term and 'A-2' short-term foreign currency sovereign credit ratings and its 'A' long-term and 'A-1' short-term local currency sovereign credit rating on Malaysia. The outlook on the long-term rating remains stable.

S&P says the sovereign credit rating reflects Malaysia’s strong external
balance sheet and considerable monetary flexibility, strengths which are
weighed against moderate fiscal deficits and Government debt burden.

It says the government's announcement of a new goods and services tax (GST) and subsidy rationalisation suggest that the narrower margin of 2013 electoral victory has not significantly impeded policymaking, reducing general concerns on the speed of government decision-making. “Consequently, we now expect economic reform efforts to continue gradually.”

S&P says Malaysia's fiscal performance has improved more than it had expected. www.standardandpoors.com (ATI).