Indonesia regained investment grade rating for its sovereign debt at Fitch Ratings after 14 years, as Southeast Asia's largest economy withstands faltering global growth and contains borrowings.
The country's long-term foreign and local currency debt was raised to BBB- from BB , Fitch said in a statement today. The outlook on both ratings is stable. Indonesia lost the investment grade rating in December 1997, during the Asian financial crisis. The rating puts the nation on the same level as India.
"The upgrades reflect the country's strong and resilient economic growth, low and declining public-debt ratios, strengthened external liquidity and a prudent overall macro policy framework," Philip McNicholas, director in Fitch's Asia- Pacific Sovereign Ratings group, said in the statement.
Indonesia's standing with rating companies has improved as President Susilo Bambang Yudhoyono targets growth of as much as 6.6 percent on average through the remainder of his term ending in 2014, pledging to spur investment and reduce the budget deficit. The country's economy, which avoided the contraction that neighbors Singapore, Malaysia and Thailand suffered during the 2009 global slump, has expanded more than 6 percent this year even as Europe's debt crisis threatens Asian exports.
"This doesn't give us immunity," Helmi Arman, an economist at Citigroup Inc. in Jakarta, said after Fitch released the announcement. "But they're going to have a broader investor base in the market because of this move. It will certainly improve our resilience."
Source: Bloomberg
0 comments:
Posting Komentar