Moody's cuts Malaysia's sovereign rating outlook to stable from positive

US credit ratings agency out with its latest view on Malaysia

• affirms A3 rating
• change in outlook reflects indicates deterioration Malaysia's growth and external credit metrics due to external pressures over past year
• change in outlook to stable indicates macro-financial risks posed by system-wide leverage which remain high in Malaysia
• public debt burden and debt affordability will see only limited improvement over the outlook horizon
• domestic imbalances remain a growth risk
• policy makers may tolerate more ringgit depreciation
• balance budget target by 2020 to be tested

We can expect on-going reviews for the region, indeed the globe, on the China fall-out.Moody's adds that despite the downgrade in outlook Malaysia will grow faster than other A-rated countries.

Full report from Moody's here.