Economics
What Moody's Is Watching as Malaysian Credit-Default Swaps Soar
- Malaysian bond risk is rising twice as fast as Indonesia's
- AllianceBernstein sees risk of Malaysia rating downgrade
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If Malaysian Prime Minister Najib Razak wants to avoid a credit-rating downgrade, the embattled leader could start by prioritizing fiscal discipline over winning political favor in next week’s annual budget.
Moody’s Investors Service says it will be watching for any signs of slippage in the government’s efforts to trim the budget deficit, especially given the drag from falling commodity prices. The ratings company has an A3 rating on Malaysia, the fourth-lowest investment grade and in line with the assessments of Standard & Poor’s and Fitch Ratings.