KUALA LUMPUR: 1Malaysia Development Bhd (1MDB) had conversations with Fitch Ratings in advance of the credit rating upgrade on Malaysia in which it discussed the company's current situation.
In a statement today, President and Group Executive Director, Arul Kanda, said the strategic development company, wholly-owned by the Malaysian Government, has also provided confidence on the measures being taken.
"We were open about the challenges we face, outlined our efforts to reduce the company's debt as presented in our rationalisation plan, and provided information on the various actions that have already been taken, including the repayment of a RM3.6 billion loan in June," he said.
Fitch has revised its outlook on Malaysia to stable from negative and reaffirmed the country's long-term foreign and local sovereign credit rating at A- and A.
"As a Malaysian, I am proud that the country has achieved a Fitch Ratings' upgrade from negative to stable outlook. This is the result of an independent review by an external party and represents recognition of the growing strength of the Malaysian economy.
"Furthermore, the upgrade is evidence of the government's success in ensuring the continued economic stability of the country.
"The Ministry of Finance and Bank Negara Malaysia in particular have done a commendable job in highlighting the positives of our economic success story," he said.
Fitch said it continued to believe that the Malaysian sovereign was incurring additional contingent liabilities beyond explicit guarantees because of quasi-fiscal operations of state-owned entity, 1MDB.
"Fitch thinks there is a high probability that sovereign support for 1MDB would be forthcoming if needed," the rating agency said on Wednesday. - BERNAMA