Sarawak, State of: Update to credit analysis - Moody's Global Credit Research

Sarawak, State of: Update to credit analysis

Sarawak, State of: Update to credit analysis - Moody's Global Credit Research
Sarawak, State of: Update to credit analysis
Published Nov 29, 2023
12 pages (6154 words) — Published Nov 29, 2023
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Brief Excerpt:

...The credit profile of the State of Sarawak (the State) is underpinned by its substantial cash reserves, which we expect to amount to 140% the state's net direct and indirect debt in 2023 (from 125% in 2022), and provide financial flexibility, and track record of conservative budgetary practices. Sarawak also benefits from a moderate likelihood of support from the Government of Malaysia (the Sovereign, A3 stable) in the event of acute liquidity stress. The elevated oil prices and withdrawal of pandemic-related spending support its financial position, even as we expect development spending to remain high in the coming years....

  
Report Type:

Credit Opinion

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Sarawak, State of
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State of Sarawak: Regular update - Credit Opinion – 2022/12/20 – US$ 250.00 – ...The credit profile of the State of Sarawak (A3 stable) is underpinned by its substantial cash reserves, which exceed its sizeable net direct and indirect debt and provide financial flexibility, and track record of conservative budgetary practices. Sarawak also benefits from a moderate likelihood of support from the Government of Malaysia (A3 stable) in the event of acute liquidity stress. The elevated oil prices support its financial position, even as we expect development spending to remain high in the coming years....

State of Sarawak (Malaysia): Update following assignment of ESG scores - Credit Opinion – 2022/04/20 – US$ 250.00 – ...The credit profile of the State of Sarawak (A3 stable) is underpinned by its substantial cash reserves, which exceed its sizeable net direct and indirect debt and provide financial flexibility, and track record of conservative budgetary practices. Sarawak also benefits from a moderate likelihood of support from the Government of Malaysia (A3 stable) in the event of acute liquidity stress. The rise in oil prices and certainty over the state's collection of the sales tax on petroleum products support its financial position, even as we expect development spending to remain high in the coming years....

State of Sarawak (Malaysia): Update following outlook change to stable from negative - Credit Opinion – 2021/10/20 – US$ 250.00 – ...The credit profile of the State of Sarawak (A3 stable) is underpinned by its substantial cash reserves, which exceed its sizeable net direct and indirect debt and provide financial flexibility, and track record of conservative budgetary practices. Sarawak also benefits from a moderate likelihood of support from the Government of Malaysia (A3 stable) in the event of acute liquidity stress. The recovery in oil prices and certainty over the state's collection of the sales tax on petroleum products support its financial position, even as we expect development spending to remain high in the coming years....

Moody's changes outlook on Sarawak's rating to stable from negative, affirms A3 rating - Rating Action – 2021/09/24 – US$ 180.00 – ...Rating Action: Moody's changes outlook on Sarawak's rating to stable from negative, affirms A3 rating...

State of Sarawak (Malaysia): Update following outlook change to negative from stable - Credit Opinion – 2020/04/01 – US$ 250.00 – ...The credit profile of the State of Sarawak (A3 negative) reflects the substantial cash reserves built up during periods of strong commodity prices, in line with its longstanding track record of generating strong operating surpluses and conservative budgetary practices. These reserves are a key source of financial flexibility, particularly because they exceed the state's sizable debt burden. Sarawak also benefits from a moderate likelihood of support from the Government of Malaysia (A3 stable) in the event of acute liquidity stress. However, the rapid and widening spread of the coronavirus outbreak, the associated deterioration in the global economic outlook, combined with falling oil prices and asset price declines are creating a severe and extensive credit shock across many sectors and regions, including Sarawak....

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Moody's Global Credit Research—Moody's Investors Service, a leading global credit rating, research and risk analysis firm, publishes credit opinions, research, and ratings on fixed-income securities, issuers of securities and other credit obligations. Credit ratings and research help investors analyze the credit risks associated with fixed-income securities. Ratings also create efficiencies in fixed-income markets and similar obligations, such as insurance and derivatives, by providing reliable, credible, and independent assessments of credit risk. For issuers, Moody's services increase market liquidity and may reduce transaction costs.

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Cite this Report

  
MLA:
Moody's Global Credit Research. "Sarawak, State of: Update to credit analysis" Nov 29, 2023. Alacra Store. Apr 27, 2024. <http://www.alacrastore.com/moodys-credit-research/Sarawak-State-of-Update-to-credit-analysis-PBC_1383476>
  
APA:
Moody's Global Credit Research. (). Sarawak, State of: Update to credit analysis Nov 29, 2023. New York, NY: Alacra Store. Retrieved Apr 27, 2024 from <http://www.alacrastore.com/moodys-credit-research/Sarawak-State-of-Update-to-credit-analysis-PBC_1383476>
  
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