Moody's: No change for Indonesia issuers

Moody's Investors Service said it determined that a new regulation from Indonesia's tax authorities will have little or no rating impact on the outstanding bonds of any of the 20 Indonesian issuers it rates, according to a new report.

The Indonesian tax authorities have closed a loophole that had allowed Indonesian bond issuers to avoid payment on much - or all - of a 20% withholding tax on interest paid to foreign bondholders, the agency said.

But Moody's said the additional interest expenses will have little or no rating impact on the 20 Moody's-rated Indonesian cross-border issuers, as the new regulation will add only a few million U.S. dollars in additional interest costs for each of the issuers.

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