| State-owned fund 1Malaysia Development Bhd's (1MDB) default has increased the probability that contingent liabilities, particularly through cross-defaults and an associated indemnity, will crystallise on Malaysia's government balance sheet, a credit negative for the sovereign, according to Moody's Investors Service.
In an issuer comment note today, Moody's said the recent developments have increased the likelihood of the Malaysian government expending fiscal resources to pay the indemnity to Abu Dhabi sovereign wealth fund International Petroleum Investment Co (IPIC), but the risk remains contingent...............................................Full Article: Source
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