Najib Spending Could Risk Downgrade Without Revenue Boost
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Malaysian Prime Minister Najib Razak’s record spending binge, aimed at shoring up support before elections as early as next month, may risk the country’s first credit-rating downgrade since the Asian financial crisis.
Standard & Poor’s “might have to think about” a potential cut in a few years unless the next government enacts measures to boost revenue and reduce subsidies after the vote, Takahira Ogawa, an analyst at the rating company, said in an interview. Moody’s Investors Service and Fitch Ratings also said Malaysia must take steps to bring down its debt-to-GDP ratio, which the International Monetary Fund projects may climb to a 20-year high of 55.9 percent this year.