Malaysia's credit rating is "more than 50 per cent likely" to be downgraded as its trade balance worsens and a state investment company struggles to meet its debt obligations, Fitch Ratings said on Wednesday. Mr Najib said in October that work will start on highways, railways and similar projects valued at about 75 billion ringgit (S$28 billion) even as the country's currency reserves dropped to the lowest level since 2011. Borrowing costs for companies involved in those ventures could fall further as rising speculation of an interest-rate cut in Malaysia and monetary easing in Europe offset concern that the US will tighten policy, according to RHB Capital Holdings. "It's a smart move for companies involved in infrastructure development to sell now," Suzaizi Mohd Morshid, Kuala Lumpur-based head of treasury at RHB Islamic Bank, a unit of RHB Capital, said by phone on Tuesday. "Market conditions are conducive for long-term note issuers."