RATINGS - S&P upgrades Indonesia's creditrating to BB+

JAKARTA: International rating agency Standard & Poor’s Rating Services raised Indonesia’s foreign-denominated long term debt rating to BB+ from BB and B for short-term debt with a stable outlook.

S&P credit analyst Agost Benard stated the rating upgrade reflects Indonesia’s continuous improvement on state balance sheet and external liquidity. “Indonesia has been showing a strong economic condition and a solid fiscal management,” he said, today. (full story)


Better public balance sheet and fiscal surplus that suppressed debt ratio were also taken as the basis of the rating upgrade.

However, he continued, the further increase is restrained by a relatively low income per capita, high inflation and a troublesome instructional matter.

UBS Asia Pacific Chairman & CEO Chi-Won Yoon said inflation issue is a serious issue for Indonesia.

“Still, in general, investors still view Indonesia as a prospective investment destination.” (T05/NOM)

Source : http://www.bisnis.com/economy/19461-sap-upgrades-indonesias-creditrating-to-bb - April 8, 2011