| The 
				FAA's safety rating is based on a country's aviation oversight 
				regime and is an assessment of the country's civil aviation 
				authority.
 At present, the only Malaysian airline route to the United 
				States is AirAsia X Bhd services from Kuala Lumpur to Honolulu 
				via Osaka.
 
 The Civil Aviation Authority of Malaysia and the FAA did not 
				immediately respond to requests for comment. Malaysia's 
				transport ministry did not have an immediate comment.
 
 Malaysia has been downgraded to Category 2, said the sources, 
				who did not want to be identified as they were not authorized to 
				speak to the media.
 
 A U.S. government official said the FAA would make an official 
				announcement on Tuesday.
 
 The official said the U.S. government was working with the Civil 
				Aviation Authority of Malaysia and would help the Southeast 
				Asian country achieve international standards that would give it 
				the top Category 1 rating.
 
 Malaysian Prime Minister Mahathir Mohamad said he was not aware 
				of the details of the downgrade.
 
 "If there is anything wrong with our civil aviation authority, 
				we will take measures, we will correct the situation," he told 
				reporters.
 
 The new rating means Malaysian airlines are restricted to 
				current levels of any existing service to the United States. 
				They would also be subject to additional inspections at U.S. 
				airports.
 
 Under Malaysia's Category 2 rating, the FAA will also not allow 
				reciprocal code-sharing arrangements between U.S. carriers and 
				Malaysian airlines.
 
 The downgrade places Malaysia in the same FAA category as 
				neighbor Thailand, which was downgraded to Category 2 in 
				December 2015 and has since tried unsuccessfully to restore its 
				Category 1 rating.
 
 Other countries in Category 2 include Bangladesh, Ghana and 
				Costa Rica.
 
 (Reporting by Joseph Sipalan, Liz Lee and A. Ananthalakshmi; 
				additional reporting by Rozanna Latiff in Kuala Lumpur and Jamie 
				Freed in Sydney; Editing by Louise Heavens and Muralikumar 
				Anantharaman)
 
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