Sarawak - Sub-sovereign - Malaysia: Sarawak's Conservative Budgetary Practices, Strong Liquidity Blunt the Effect of Falling Oil Prices

State of Sarawak (Malaysia): Update to credit analysis - Credit Opinion – 2019/04/08 – US$ 250.00 – ...The credit profile of the State of Sarawak (A3 stable) reflects its substantial cash reserves built during periods of strong commodity prices due to its long-term track record of generating strong operating surpluses and conservative budgetary practices. Such reserves are a key source of financial flexibility, particularly because they exceed the state's sizable debt burden. In addition, the institutional framework for Sarawak provides more sources of revenue than most other states in Malaysia (A3 stable) and Sarawak has demonstrated its ability to expand its revenue base. Sarawak also benefits from the moderate likelihood of support from the government of Malaysia in the event of acute liquidity stress. Our medium- term price band for West Texas Intermediate crude of $50-$70/bbl, coupled with Sarawak's considerable budget flexibility, will continue to support the state's financial position. The state also announced an increase in the sales tax on petroleum products in its 2019 budget,...

State of Sarawak (Malaysia): Update to credit analysis - Credit Opinion – 2018/06/06 – US$ 250.00 – ...The credit profile of the State of Sarawak (A3 stable) reflects its long-term track record of generating strong operating surpluses, coupled with conservative budgetary practices, which allowed the state to build-up substantial cash reserves during periods of strong commodity prices. Such reserves are a key source of financial flexibility, particularly because they exceed the state's sizeable debt burden. Sarawak also benefits from the moderate likelihood of support from the federal Government of Malaysia (A3, stable) in the event that the entity faced acute liquidity stress. Given a reliance on gas exports, the state's positive historical financial performance was affected by lower revenues in 2016 and this led to a slight cash deficit in 2016 and this deficit should persist in 2017. However, we expect higher crude oil prices in 2018 and 2019, coupled with Sarawak's considerable budget flexibility to substantially mitigate this challenge....

State of Sarawak (Malaysia): Update to credit analysis - Credit Opinion – 2018/01/05 – US$ 250.00 – ...The credit profile of the State of Sarawak (A3 stable) reflects its long-term track record of generating strong operating surpluses, coupled with conservative budgetary practices, which allowed the state to build-up substantial cash reserves during periods of strong commodity prices. Such reserves are a key source of financial flexibility, particularly because they exceed the state's sizeable debt burden. Sarawak also benefits from the moderate likelihood of support from the federal Government of Malaysia (A3, stable) in the event that the entity faced acute liquidity stress. The challenge to the state's positive financial performance from lower revenues resulting from low oil and gas prices is expected to persist in 2017 and potentially 2018. This has led to a slight cash deficit in 2016 and this deficit should persist in 2017. However, we expect Sarawak's considerable budget flexibility to substantially mitigate this challenge....

Sarawak, State of: Update to Discussion of Key Credit Factors - Credit Opinion – 2017/01/11 – US$ 250.00

Moody's: Sarawak well positioned to respond to challenging operating environment - Announcement – 2015/10/27 – US$ 180.00

Sarawak - Sub-sovereign - Malaysia: Sarawak's Conservative Budgetary Practices, Strong Liquidity Blunt the Effect of Falling Oil Prices - Credit Focus – 2015/10/26 – US$ 750.00

Moody's affirms Sarawak's ratings at A3 with a stable outlook - Rating Action – 2013/11/20 – US$ 180.00

Sarawak, State of - Analysis – 2013/05/19 – US$ 750.00

Moody's seeks market feedback on proposed update to rating approach for regional & local governments outside the US - Announcement – 2012/11/15 – US$ 180.00

Moody's assigns A3 rating to State of Sarawak-related SSG Resource Ltd's Notes - Rating Action – 2012/09/25 – US$ 180.00