S&P affirms A- rating for Sarawak with stable outlook

SINGAPORE - Standard & Poor's has affirmed its 'A-' long-term issuer credit rating on the Malaysian State of Sarawak, saying that in its view, Sarawak has a strategic position within the Federation - accounting for half of Malaysia’s crude oil output and being sole provider of liquefied natural gas (LNG). 

“This is against the backdrop of an evolving but balanced institutional framework,” S&P says. The State's very high debt burden, high contingent liabilities, and low-income economy relative to international benchmarks for GDP per capita temper these strengths.

“Our view of Sarawak's satisfactory financial management and average budgetary flexibility are neutral to the ratings.”  www.standardandpoors.com (ATI).