Moody’s downgrades Malaysia banking system outlook to negative

KUALA LUMPUR: Moody's Investors Service has downgraded Malaysia’s banking system to negative from stable to reflect growing risks from coronavirus outbreak.

“Asset risks for banks will increase while their profitability will decline amid deteriorating economic conditions in the next 12-18 months. Still, robust loan-loss reserves and capitalisation will provide a buffer against growing risks,” Moody’s said in a statement Thursday.