KL's policy inconsistent

KL's policy inconsistent

KUALA LUMPUR (Dow Jones): International ratings agency Fitch
IBCA yesterday assigned a first-time long-term foreign currency
rating of triple-B-minus to Malaysia, citing the country's
relatively low external debt levels, but also highlighting an
"inconsistent policy stance."

Fitch IBCA said its rating will apply to all senior, unsecured
sovereign and sovereign-guaranteed foreign currency debt issues,
and will set a ceiling for banks and corporates in Malaysia. A
short-term currency rating of F3 was also introduced.

The agency said Malaysia's low external debt, coupled with
strong foreign reserves, justify investment grade ratings. Fitch
IBCA also highlighted strong foreign direct investment inflows
and a well-developed domestic capital market which has limited
excessive foreign borrowing.