Fitch Ratings has affirmed Malaysia's Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) at 'A-' and 'A' respectively with Stable Outlooks.

According to Fitch in a statement, the rating is reflecting key drivers including authorities commitment to fiscal consolidation path, stable ringgit, reserves and stronger economic growth.

It views the macroeconomic assumptions in the recalibrated budget as broadly realistic with the budgeted oil price is expected to average US $30-35 per barrel in 2016 while Malaysian GDP growth is projected in a range of 4 -4.5 percent.

Fitch expects the ratio of federal government debt to GDP to rise modestly to 2017 but to remain below the authorities' 55 percent policy ceiling.

The decline in global oil prices that began in August 2014 coincided with the onset of portfolio and debt-capital outflows from Malaysia that put pressure on the external finances, a situation that persisted for the first three quarters of 2015.

However, the currency and reserves have stabilised since September 2015, despite a further decline in oil prices.

It added, Malaysia's external liquidity has weakened but remains in line with 'A' range peers' medians for coverage of current external payments and the liquidity ratio.

Fitch expects the current account to remain in modest surplus out to 2017.

The rating agency also expects real GDP growth of about 4 percent in 2016 and 2017, below the five-year average of 5 percent.