Moody’s rates Indonesia program Baa3

Moody's Investors Service said it assigned a provisional rating of Baa3 to the Government of Indonesia's announced bond offering on its existing global medium-term note program.

The outlook is stable.

Moody’s said Indonesia's Baa3 government bond rating is supported by healthy economic prospects, structurally narrow fiscal deficits, and low public indebtedness. The country's very large scale and ample natural resource endowment also buttress the rating, although GDP per capita is still low amongst investment grade countries.

The government's low debt burden, favorable maturity profile, and high debt affordability — as represented by interest payments as a proportion of revenue — are well-placed among rating peers and guard against refinancing risks, the agency said.

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