WASHINGTON: Malaysia's A3 rating and stable outlook reflect the country's strong external financial position, Moody's Investors Service said in its annual country report on Thursday.
“The current account recorded large surpluses for the past five years, and we expect the trend to continue this year, though with a smaller surplus,” Moody's vice-president Steven A. Hess, lead analyst for Malaysia, said from New York.
“Furthermore, Malaysia's liquidity position is healthy, as short-term external debt has declined to a low level and international reserves are high,” he said in unveiling Malaysia 2005 Credit Analysis.
The report is a yearly update to the markets and is not a rating action. Malaysia's government debt-to-gross domestic product (GDP) ratio increased to 48.4% in 2004, which Moody's anticipates will be its peak. – Bernama
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