It said legal opinions have also confirmed legal, binding and enforceable obligations for the Malaysian government. Moody's also noted that its sukuk ratings do not express an opinion on the structure's compliance with Shariah law. The rating agency said Malaysia's A3 rating is underpinned by its diversified, competitive and moderately large economy, strong medium-term growth potential compared with peers, and ample natural resources. A change in Malaysia's sovereign rating will be automatically reflected in the trust certificate ratings of the issuer. “Volatile politics that undermined the credibility and effectiveness of institutions and threatened the stability of capital flows would also be credit negative.

Source: The Edge Markets April 19, 2021 06:35 UTC