S&P rates Indonesia notes BB+

Standard & Poor’s said it assigned a BB+ preliminary long-term foreign-currency rating to a global sukuk trust certificate issuance under the $10 billion sukuk program of the Republic of Indonesia through Perusahaan Penerbit SBSN Indonesia III.

The issuer is a fully owned special purpose vehicle of Indonesia established solely for issuing foreign-currency-denominated Sharia-compliant securities of Indonesia in international markets, S&P said.

The rating on the proposed sukuk trust certificates reflects the long-term foreign-currency rating on Indonesia because the transaction fulfills the five conditions of criteria for rating a sukuk, the agency said.

Indonesia will provide sufficient and timely contractual obligations for the repayment of the periodic distribution amounts and the principal amount, S&P said.

Indonesia’s obligations are irrevocable and unconditional and these obligations will rank pari passu with Indonesia’s other general financial obligations, the agency added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.