budget deficit

 
 

UK watchdog puts Brexit war chest at £26.6b

LONDON, March 14 — Britain will have a £26.6-billion (RM143.92-billion) war chest to battle the potential damage of its exit from the European Union, a government oversight body said. With the Brexit deadline approaching on March 29 and no deal…


Moody's downgrades Oman to junk, outlook negative

DUBAI, March 6 — Rating agency Moody's downgraded Oman's credit rating to junk, joining other rating agencies, and said its outlook for the rating is negative, citing fiscal challenges in an environment of moderate oil prices. Moody's downgraded…


China to slash taxes, boost lending to shore up slowing economy

BEIJING, March 5 — China will cut billions of dollars in taxes and fees, increase infrastructure investment, and step up lending to small firms, Premier Li Keqiang said, as the government boosts stimulus to shore up an economy growing at its…


Asian shares retreat, China cuts growth target

TOKYO, March 5 — Asian shares stepped back today after China cut its economic growth target and pledged measures to support the economy amid growing challenges from rising debt and a dispute over trade and technology with the United States….


Fitch affirms Malaysia’s rating at ‘A-’, outlook stable

KUALA LUMPUR: Fitch Ratings has affirmed Malaysia’s long-term foreign-currency issuer default rating (IDR) at ‘A-’ with a stable outlook. The ‘A-’ rating reflects higher growth rates than the peer median and a net external creditor position which is supported by steady current account surpluses and large external assets. However, the rating is constrained by high […]


Fitch affirms Malaysia's rating of 'A-' with stable outlook

KUALA LUMPUR, Feb 22 — Fitch Ratings has affirmed Malaysia's long-term foreign-currency issuer default rating (IDR) at “A-” with a stable outlook. The “A-” rating reflects higher growth rates than the peer median and a net external…


Loan of US$100m from Taiwan gives lifeline to Nicaragua's Ortega

MANAGUA, Feb 20 — Nicaragua's congress yesterday accepted a US$100 million (RM408 million) loan offered by Taiwan, giving a line of support to President Daniel Ortega's government, which has become increasingly isolated after a brutal crackdown on…


US debt hits record under Trump, Republicans mum

WASHINGTON, Feb 20 — More massive than the US economy, the national debt hit a new record of US$22 trillion (RM89.7 trillion) under President Donald Trump but Republicans who traditionally rail against debt and deficits have remained mum. The sum…


Global sovereign sukuk issuance to rise to US$100 billion by 2020

KUALA LUMPUR: Moody’s Investors Service Ltd expects total gross sovereign sukuk issuance, including short-term securities, will recover in 2019 and surpass its record-high volumes of US$93 billion (US$1= RM4.088) reached in 2012, by 2020. Moody’s vice-president and senior analyst Alexander Perjessy said the international rating agency projects global sovereign sukuk issuance to increase to US$87 […]


Global sovereign sukuk issuance to rise to US$100b in 2020

KUALA LUMPUR: Moody’s Investors Service Ltd expects total gross sovereign sukuk issuance, including short-term securities, will recover in 2019 and surpass its record-high volumes of US$93 billion (RM379 billion) reached in 2012, by 2020.

Moody’s vice-president and senior analyst Alexander Perjessy said the international rating agency projects global sovereign sukuk issuance to increase to US$87 billion in 2019 and rise towards US$100 billion in 2020, from US$78 billion in 2018.

“This recovery will be driven by a combination of various sovereigns’ commitments to further sukuk market development, higher sukuk refinancing needs and our expectations of higher budget deficits for the major sovereign sukuk issuers in 2019-2020,“ he said in a report themed “Sovereigns-Global: Sovereign Sukuk Issuance to Recover Amid Moderate Oil Prices and Higher Refinancing Needs” released today.

Perjessy said he expects gross sovereign issuance to also rise further in the medium term as the sukuk issued by Gulf Cooperation Council (GCC) governments begin to mature.

Global gross sovereign sukuk issuance declined 5% to US$78 billion in 2018, from US$82 billion in 2017.

Perjessy said Malaysia has by far the largest stock of outstanding long-term sovereign sukuk worth US$84 billion, followed by Indonesia (Baa2 stable) and Saudi Arabia (A1 stable), with around US$40 billion each.

“The three sovereigns and Qatar (Aa3 stable) have been the most active in promoting the market’s development,“ he said.

He said during 2015-2018, sukuk issues filled nearly 80% of Malaysia’s fiscal deficit financing needs, whereas they covered about a third of Qatar’s and Indonesia’s fiscal deficit and around 14% of Saudi Arabia’s.

Moving forward, Perjessy said Moody’s expects the three largest issuers – Malaysia, Saudi Arabia and Indonesia – to gradually increase their share of sukuk in fiscal deficit financing, further supporting the market’s growth prospects.

“In the medium term, gross issuance will rise further, particularly when GCC sukuk instruments issued after 2016 begin to mature in 2022 and beyond and are refinanced by issuing new sukuk instruments,“ he said.

He added that the Islamic Development Bank (IsDB, Aaa stable) remains by far the largest issuer among the supranationals, with more than US$16 billion of outstanding sukuk at the end of 2018.