Indonesia rated investment grade by all major agencies as S&P upgrades
Indonesia investment grade | For the first time since the Asian financial crisis, Indonesia’s sovereign bonds are rated investment grade by all three major credit ratings agencies after Standard & Poor’s today lifted its rating on the country’s debt.
Indonesia’s finance ministry has been pushing hard to achieve this and will see it as an important validation of their management of the economy and the country’s sound finances.
In lifting the country’s credit rating one notch to Bbb- and the outlook higher to stable, S&P said in a statement today that:
Indonesian authorities have taken effective expenditure and revenue measures to stabilize the country’s public finances despite the terms of trade shock.
The agency said it expects net government debt to stabilize near current low levels below 30 percent, while the budget deficit will gradually decline.
Indonesia investment grade | S&P said Indonesia has “exhibited effective policymaking in recent years to promote sustainable public finances and balanced economic growth” and said economic and policy settings “have become more predictable recently.”
Rival agency Fitch raised Indonesia’s credit rating to its current level of Bbb- in December 2011, while Moody’s Investors Services gave the country a Baa3 rating as of January 2012.