Ringgit Declines as Fitch Flags Possible Rating Cut in Malaysia
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The ringgit fell as Fitch Ratings said Malaysia’s credit ranking sits “more naturally” in the BBB range, suggesting a possible downgrade.
A deterioration in the current-account surplus exposes Malaysia to volatility in investor sentiment and Fitch will review the country in the second quarter, Andrew Colquhoun, the company’s head of Asia-Pacific sovereign ratings, said in an interview Wednesday in Singapore. The nation is currently rated A-, the fourth-lowest investment grade, and two levels above BBB. There’s more than a 50 percent likelihood of a rating cut, Colquhoun said.