Fitch’s downgrade of Malaysia’s rating unlikely to impact financial markets

RHB Research expects the MYR bond market to remain supported as bond dynamics are healthy on the back of continued support from onshore real money investors and still compelling real yields.

KUALA LUMPUR: Fitch Rating’s decision to downgrade Malaysia’s long-term foreign currency issuer default rating (IDR) to BBB+ from A- is unlikely to impact its financial markets on a sustained and significant basis, RHB Research said.

It said on Monday the downgrade was unlikely to be followed by S&P and Moody’s in the next few months.