State of Sarawak (Malaysia): Update following outlook change to stable from negative - Moody's Global Credit Research

State of Sarawak (Malaysia): Update following outlook change to stable from negative

State of Sarawak (Malaysia): Update following outlook change to stable from negative - Moody's Global Credit Research
State of Sarawak (Malaysia): Update following outlook change to stable from negative
Published Oct 20, 2021
10 pages (5791 words) — Published Oct 20, 2021
Price US$ 250.00  |  Buy this Report Now

About This Report

  
Brief Excerpt:

...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....

  
Report Type:

Credit Opinion

Company:
Issuer
Sarawak, State of
Format:
PDF Adobe Acrobat
Buy Now

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....

Moody's changes outlook on Sarawak to negative, affirms A3 rating - Rating Action – 2020/03/27 – US$ 180.00 – 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY'S that you are, or are accessing the document as a representative of, a "wholesale client" and that neither you nor...

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....

More from Moody's Global Credit Research

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.

About the Author


Cite this Report

  
MLA:
Moody's Global Credit Research. "State of Sarawak (Malaysia): Update following outlook change to stable from negative" Oct 20, 2021. Alacra Store. Nov 30, 2021. <http://www.alacrastore.com/moodys-credit-research/State-of-Sarawak-Malaysia-Update-following-outlook-change-to-stable-from-negative-PBC_1303941>
  
APA:
Moody's Global Credit Research. (). State of Sarawak (Malaysia): Update following outlook change to stable from negative Oct 20, 2021. New York, NY: Alacra Store. Retrieved Nov 30, 2021 from <http://www.alacrastore.com/moodys-credit-research/State-of-Sarawak-Malaysia-Update-following-outlook-change-to-stable-from-negative-PBC_1303941>
  
US$ 250.00
$  £  
Have a Question?

Any questions about the report you're considering? Our Customer Service Team can help! Or visit our FAQs.

More Research

Search all our Credit Research from one place.