RI credit rating receives investment grade
Aditya Suharmoko, The Jakarta Post, Jakarta | Tue, 07/13/2010 7:05 PM | Business
The Japan Credit Rating Agency has upgraded Indonesia 's credit rating to investment grade, citing the nation's economic prospects and prudent fiscal management, the central bank said in a statement Tuesday.
Indonesia's foreign currency long-term senior debt has been raised from BB+ to BBB- and the local currency long-term senior debt rating rose from BBB- to BBB, said Bank Indonesia (BI). The outlook is stable.
The agency cited five factors for the upgrade: Improving political and social stability; encouraging economic prospects; the declining public debt burden; higher resilience in external factors due to rising foreign exchange reserves; and the government's efforts to improve infrastructure.
"The investment grade rating will improve the confidence foreign investors have in Indonesia . This step is expected to be followed by other international rating agencies," said BI Deputy Governor Hartadi A. Sarwono.
