S&P rates Indonesia bonds B+

Standard & Poor's said it assigned its B+ rating to Indonesia's (foreign currency B+/stable/B; local currency BB/stable/B) proposed $1.25 billion global bonds. The bonds will be issued in two tranches - one tranche of at least $750 million maturing in January 2016 and a second tranche of at least $250 million maturing in October 2035.

S&P said the sovereign ratings on Indonesia are supported by the country's declining debt and debt-servicing burden, its track record of conservative fiscal management and adequate external liquidity.

The ratings on Indonesia are also supported by adequate external liquidity, despite the fall in reserves this year after central bank intervention to support the rupiah, and debt repayments.

S&P said the ratings on Indonesia are constrained by its still-high external leverage and by the country's below-potential economic growth, which averaged a relatively modest 4.1% in the past five years.

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