He was referring to Wahid’s denial that the change was a downgrade. Moody’s this week affirmed Malaysia’s issuer and senior unsecured bond ratings at A3 and changed the outlook from “positive” to “stable.” Wahid said it was a “revision” and not a downgrade.

Speaking to FMT, Dzulkefly said Wahid was playing with words and missing the point that the Malaysian economy was not doing well.

He said what was important to the business community was whether ratings by Moody’s and other agencies would have an adverse effect on the cost of borrowing.

“Does it really matter whether it’s a downgrade or a revision? Bloomberg has actually reported that borrowing costs on Islamic bonds will climb to a record high ,” he said.

“That is what Wahid should be concerned about, not be pedantic about terminologies.”

Dzulkefly added that the outlook on borrowing costs would hurt Malaysia’s sale of Islamic bonds.

“Banks like RHB Investment Bank say that this trend is here to stay,” he said. “That would be worrying to the business community and, particularly, to the sukuk and Islamic financial markets.”