State investment firm 1Malaysia Development Berhad (1MDB) may be slapped with a default status if it does not pay its RM2 billion loan by the end of February, Wall Street Journal reports.

Local banks issued the rare ultimatum, seemingly losing patience after extending the deadline twice before in last November and January.  

"People with knowledge of the process said that the consortium of creditors - including Malayan Banking Bhd and RHB Capital Bhd - have told 1MDB to come up with a payment plan or else face an 'event of default'," it reported.

When contacted by Malaysiakini, 1MDB declined to comment on the matter.

1MDB has repeatedly maintained that it has not defaulted on any loans, as yet.

The default status threat comes after Fitch Ratings said 1MDB's financial status is a "source of uncertainty" because the state guarantees some of its borrowings.

The RM2 billion loan is a small portion of the firm's RM41.9 billion total liabilities as at March 31, 2014.

Tycoon Ananda Krishnan is speculated to offer a rescue by loaning 1MDB the funds to pay off their debts.