Moody’s Up-grades Indonesia’s Sovereign Debt Rating
Moody’s Investors Service said Monday it up-graded Indonesian government’s foreign, and local-currency bond ratings to B-a1, from B-a2, with stable outlook.
Moody’s said in a statement that its main reasons for the move were the country’s economic resilience, accompanied by sustained macro-economic balance; improvement in the government’s debt position and the central bank’s foreign-currency reserve adequacy; and improving prospects for foreign direct investment inflows.
“We have upgraded the sovereign credit ratings, as the momentum in the economy is expected to be sustained by steady domestic demand, a reasonable pace and sequencing of policy and structural reforms, and rising foreign direct investment,” Aninda Mitra, Moody’s lead sovereign analyst for Indonesia, said in a statement.
The up-grade affects the country’s ceiling for foreign currency bonds, which was raised by a notch to Baa3, and the foreign-currency bank-deposit ceiling, which was raised to B-a2.—
Source: www.livetradingnews.com (Paul A. Ebeling, Jnr.)