Fitch Sees More Than 50% Odds of Malaysia Downgrade on 1MDB
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Malaysia’s credit rating is “more than 50 percent likely” to be downgraded as its trade balance worsens and a state investment company struggles to meets its debt obligations, Fitch Ratings said.
The Southeast Asian nation would “sit more naturally in the BBB range,” Andrew Colquhoun, head of Asia Pacific sovereign ratings, said in an interview in Singapore Wednesday. Malaysia is rated A- by Fitch, one level above the lowest three bands of the investment grade ranging from BBB+ to BBB-. The ringgit erased gains.