PETALING JAYA: S&P Global Ratings forecast a 9% rebound in the Malaysian ringgit by the end of the year, and said the weak currency doesn’t pose a risk to the sovereign rating. "We do not see the depreciating ringgit as a risk to the sovereign rating,” said YeeFarn Phua, sovereign analyst at S&P in Singapore. S&P joins Moody’s Investors Service in highlighting the safety of the nation’s credit rating despite the ringgit’s weakness, as almost all the nation’s debt is denominated in the local currency. The government’s foreign debt was about RM30bil (US$6.26bil) at the end of 2023, just under 3% of the total, S&P estimated. Malaysia is rated A- at S&P since 2003, signifying its strong ability to pay debt.

Source: The Star February 22, 2024 16:41 UTC