Affin Hwang: Rating downgrade unlikely if Malaysia can meet deficit target

KUALA LUMPUR: Affin Hwang Capital Research does not expect a sovereign rating downgrade on Malaysia in spite of the high possibility of the government resetting the fiscal deficit to a higher level temporarily due to extraordinary circumstances.

Its chief economist and head of research Alan Tan said the rating agencies are likely to sustain their ratings on Malaysia as “stable” for as long as the government can meet expectations on its revised targeted budget deficit.