Fitch rates Indonesia notes BB

Fitch Ratings said it assigned a BB long-term foreign-currency rating to the Republic of Indonesia's forthcoming $4 billion global medium-term note program.

Indonesia's foreign- and local-currency issuer default ratings were affirmed in January at BB with a stable outlook. The affirmation balances the credit's fundamental strengths of its public finances against underlying risks to the country's external finances, according to the agency.

Strengths include structural improvements in public finance management and thorough ongoing surveillance of fiscal risks, the agency said.

External finances remain vulnerable to heightened portfolio investor risk aversion, an accumulation of external assets offshore by domestic residents and heavy refinancing needs amid an environment of tight external funding conditions and weakening external receipts, Fitch noted.

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