Moody's: Indonesia upgrade will benefit corporates

Moody's Investors Service said that its decision to upgrade Indonesia's sovereign rating to investment grade earlier this year will benefit the country's corporates gradually as they remain constrained by more company or industry-specific issues.

"Whilst the immediate rating implications from the upgrade have been moderate, we expect the wider environment for Indonesian corporates to improve in the medium- to longer-term," Moody's analyst Nidhi Dhruv said in a news release.

"Indonesian corporates will, over time, benefit from cheaper and more diverse funding opportunities, more foreign direct investment, and a more stable and predictable operating environment as the result of improved transparency, a more predictable legal framework and progressive policy initiatives," Dhruv added in the release.

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