S&P lowers Malaysian outlook

S&P lowers Malaysian outlook

KUALA LUMPUR (Reuters): Ratings agency Standard & Poor's on Thursday revised its outlook on Malaysia's long term foreign currency rating to stable from positive on concerns of a rising fiscal deficit and greater political uncertainty.

S&P affirmed all its long- and short-term ratings on Malaysia, including the triple 'B'/'A-3' foreign currency ratings on the sovereign in investment grade.

"Malaysia's fiscal deficit is sustainable although the deficit has worsened and is the worst in a decade," Chew Ping, associate director of sovereign ratings at S&P, told Reuters.

Last week, the central Bank Negara said the $789 million fiscal stimulus will push up the government's fiscal deficit target to 6.0 percent of gross domestic product (GDP) in 2001 from an earlier estimate of 4.7 percent.