Moody's changes Sarawak view to stable

Moody's Investors Service said it changed the outlook on the state of Sarawak to stable from negative and affirmed the long-term issuer rating at A3.

“The change in outlook to stable from negative reflects Moody's assessment that the recovery in oil prices since the onset of the coronavirus shock, combined with the settlement of the dispute with Petroliam Nasional Bhd. (Petronas, A2 stable) and the associated enhanced visibility over the collection of the state's sales tax on petroleum products, will provide Sarawak's government with greater fiscal flexibility to maintain relatively high levels of development expenditure while keeping solid levels of financial buffers over the next few years––a key source of credit support,” Moody’s said in a press release.

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