1. It's Petronas, Maybank and TM. All outlook has been now downgraded to "Negative" from "Stable".
2. In the short term, Maybank and TM will need to pay higher interest cost in the next round they go to the market to raise bond. This should impact their earnings if the bond yield rise significantly.
3. In the long run, this is a wake up sign that Malaysia better get its debt situation under control. Otherwise, the real downgrade on the "A-" situation for Malaysia is just a matter of time.
4. What to do?
>> If you do not believe much will done to ratify the issue raised by Fitch, then go open account which allow deposit in foreign denominated $. This will at least protect against Ringgit depreciation.
>> Diversify stock investment away from pure Malaysia stocks. I am looking at WILMAR (SGD 3.15) because this stock has been bashed down severely from SGD5.50 in the last 1 year. Their earnings will be released next week, hope it will be good then this stock can move.
>> Buy into stocks that fundamentally can benefit from weak MYR such as plantation companies, rubber glove makers and technology stocks.