INDONESIA - RATINGS - Moody’s Upgraded Indonesia’s Sovereign Credit Rating to Ba1/stable outlook (Jan 2011)

www.bi.go.id - Moody’s Investors Service has today (January 17, 2010) upgraded Republic of Indonesia’s foreign and local-currency bond ratings to Ba1 with stable outlook. This follows Moody’s release last December which placed the ratings on a review for possible upgrade.

In the press release today, Moody's stated the key factors supporting this action were (1) economic resilience is accompanied by sustained macroeconomic balance; (2) Improved government’s debt position and central bank’s foreign currency reserve adequacy; and (3) Improved prospects for foreign direct investment inflows which expected to fortify Indonesia’s external position and economic outlook.  (source)

CAPITAL MARKETS - SUKUK - Indonesian sukuk shunned as inflation quickens

Indonesia’s highest inflation rate in almost two years is discouraging investors from the nation’s Islamic bonds as HwangDBS Investment Management Bhd. says policy makers will raise borrowing costs at least once more this year. (source)