KUALA LUMPUR: It is up to us to tell our story to the world, says Bank Negara Malaysia governor Tan Sri Zeti Akhtar Aziz.
Referring to the credit-default-swap (CDS) traders’ downgrading of nine emerging markets including China and Malaysia to the ‘junk status’, Zeti said the rating was not made by a rating agency and it is up to Malaysia to tell her side of the story.
“The (downgrading) was not by a rating agency and it is put to us to tell the story to the market, just like how we did in 1999, after the Asian financial crisis.
“During the crisis, all sorts of things were said about Malaysia but in 1999, less than a year after that we went to tell the world our story and this is what we must do.
“So investors will look how we assess our situation and they can make their assessment then,” she told reporters after the “Financial LATeracy” exhibition at the Central Bank’s Museum and Art Gallery today.
The downgrading of Brazil’s credit rating by the international ratings agency Standard & Poor’s has raised serious doubts among CDS traders to unofficially downgrade nine emerging markets including China and Malaysia.
On Sept 24, news agency Bloomberg cited data from ratings agencies Moody’s, when reporting that CDS traders view six developing nations including Malaysia as deserving to follow Brazil’s downgrade to “junk status”.
Moody’s had this week graded Malaysia at A3, but traders see it six levels lower at Ba3, faring slightly worse than Peru in the eyes’ of the traders which gave that country a Ba2 grade.
The traders see Malaysia as one notch better than South Africa at B1, and also faring better than Bahrain, Turkey, Kazakhstan at B2. Moody’s data classifies Ba1 to B3 as the junk category.