S&P's Latest Assessment A Testament To M'sia Continuous Efforts - Treasury Sec-Gen

KUALA LUMPUR, July 28 (Bernama) -- The government has welcomed Standard & Poor's (S&P) reaffirmation of Malaysia's long-term foreign currency credit rating at ‘A-’ with a stable outlook. Treasury secretary-general Dr Mohd Irwan Serigar Abdullah said the reaffirmation of the sovereign credit rating was a testament to the government's continuous efforts in ensuring sound macroeconomic fundamentals and strengthening public finances. "S&P acknowledges the government's pragmatic management of the economy and steadfast commitment to fiscal reforms, in particular the fuel subsidy rationalisation and revenue diversification through the Goods and Services Tax," he said in a statement here Monday. S&P is the second rating agency after Fitch to reaffirm the country's long-term foreign currency issuer default rating at 'A-' and revising the outlook upwards to stable from negative early this month. The rating is underpinned by Malaysia's strong external position as reflected in the continued current account surpluses despite weaker commodity prices and slower external demand besides monetary flexibility that helps to absorb economic shocks. Irwan said a deep capital market that reduced dependence on external borrowing and the government's decisive implementation of fiscal measures also supported the rating. He said S&P also expressed confidence in Malaysia’s responsive and effective policymaking. S&P believes that issues surrounding 1MDB will not hinder the government’s resolve in pursuing economic and fiscal reforms. -- BERNAMA