Fitch affirms A- rating for Malaysia, estimates Govt debt at 65% of GDP

Malaysia's average GDP growth for the five years to 2018 is projected to remain above peer medians. Fitch, however, cautioned that the downside risks to its growth projections could materialise from accelerated spending cuts, disruption to capital projects or slowing investment in the event of prolonged policy and political uncertainty.

KUALA LUMPUR: Fitch Ratings has affirmed Malaysia's long-term foreign-currency issuer default rating (IDR) at 'A-' with a stable outlook supported by solid economic growth and a net external creditor position built up from a record of current account surpluses.

It said the affirmation not only takes into consideration measures such as the rollback of the Goods and Services Tax (GST), but also the stated intention to reduce fiscal deficits and improve governance.