1MDB chief: We discussed company's financial situation with Fitch ratings agency

1MDB chief: We discussed company's financial situation with Fitch ratings agency

PETALING JAYA - 1Malaysia Development Berhad said it had held discussions with Fitch before the international ratings agency upgraded Malaysia's outlook from negative to stable.

Its president, Arul Kanda Kandasamy said they had discussed the company's current situation and Fitch was "open" with the challenges they were facing.

"We had conversations with Fitch in advance of the upgrade, in which we discussed the company's current situation and provided confidence on the measures being taken," he said in a statement, Thursday.

Arul Kanda, who is also 1MDB's chief executive officer, said the company outlined their efforts to reduce the company's debt as presented in their rationalisation plan.

"(We also) provided information on the various actions that have already been taken including the repayment of a RM3.6bil loan in June," he said.

He also said the upgrade was 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 our country.

"The Ministry of Finance and Bank Negara in particular have done a commendable job in highlighting the positives of our economic success story," he said.

Fitch had maintained Malaysia's long term foreign currency default rating (IDR) at A- and local currency at A, with the outlook revised to stable from negative previously.

It said Malaysia's fiscal finances have improved and views progress on the Goods and Services Tax and fuel subsidy reform as supportive of the fiscal finances.

In July 2013, Fitch had attached a "negative" outlook to Malaysia and suggested earlier this year that there was a 50 per cent chance of a downgrade in the rating.

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