KUALA LUMPUR: Credit ratings agency Fitch surprised analysts by upgrading Malaysia´s sovereign outlook to "stable" from "negative", boosting the country´s currency on Wednesday and providing welcome relief to the country´s controversy-plagued government.
In a statement just before midnight on Tuesday, Fitch affirmed the country´s credit rating at "A-", the fourth-lowest investment rating, and said Malaysia´s fiscal finances had improved since 2014, citing progress on a newly-introduced consumption tax and fuel subsidy reforms.
"Malaysia´s rating remains supported by reasonably strong real GDP growth rates and low inflation volatility," said Fitch, which had downgraded Malaysia´s sovereign outlook to "negative" in 2013. The positive news helped bolster the local currency on Wednesday, with the ringgit at 3.7347 against the US dollar, up from 3.7733 on Tuesday.