Moody's ups Indonesia

Moody's Investors Service said it upgraded the Indonesian government's foreign- and local-currency bond ratings to Ba1 from Ba2. The action concludes a review that began in December.

The upgrade also affects the country's ceiling for foreign-currency bonds, which was upgraded a notch to Baa3, and its foreign-currency bank deposit ceiling, which was upgraded to Ba2. The local-currency bond and deposit ceilings have been raised to Baa1 from Baa2. The country ceiling for short-term foreign-currency debt is not-prime and remains unaffected by this action.

The outlook is stable.

The upgrades reflect Indonesia's economic resilience, which was accompanied by sustained macroeconomic balance, Moody's said.

The government's debt position and the central bank's foreign-currency reserve adequacy are improving and the prospects for foreign direct investment inflows also are improving, the agency said, and this is expected to fortify Indonesia's external position and economic outlook.

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