Malaysia Escapes Fitch Downgrade on Improvement in Finances

Fitch Ratings maintained Malaysia’s credit ranking at the fourth-lowest investment grade after signaling a downgrade earlier this year, saying finances are improving and growth remains steady. Stocks and the ringgit rose.

The outlook on the nation’s A- grade was revised to stable from negative, Fitch said in a statement Tuesday. A new consumption tax and fuel subsidy reforms are supportive of Malaysia’s finances even as federal government debt and explicit guarantees continue to increase, it said.