INDONESIA: Moody’s Affirms Indonesia’s Baa3 Sovereign Rating

Thursday January 28 2016

On 28th January 2016, Moody`s Investors Service affirmed the Government of Indonesia`s Baa3 issuer rating, Baa3 senior unsecured bond ratings, and (P) Baa3 senior unsecured MTN program rating with a stable outlook.

The key drivers of the affirmation are Moody`s expectations that:

1. Indonesia will maintain its strong balance sheet against the current backdrop of widening fiscal deficits; and
2. Policymakers will continue to effectively manage the risks from lower commodity prices and weaker growth to ensure the sustainability of Indonesia`s external payments position.

In a related rating action, Moody`s has affirmed the (P)Baa3 senior unsecured MTN programme rating and Baa3 senior unsecured ratings of the US dollar trust certificates issued by Perusahaan Penerbit SBSN Indonesia III, a special purpose vehicle established by the Government of Indonesia. The payment obligations associated with these certificates are direct obligations of the Government of Indonesia, and its ratings automatically reflect changes to Indonesia`s sovereign ratings.

Click on the link above for further details.