Moody’s assigns Indonesian bonds Baa3

Moody's Investors Service said it assigned a provisional Baa3 rating to bonds issued under Indonesia's global medium-term note program.

The outlook is stable.

Moody’s said Indonesia's Baa3 government bond rating is supported by narrow fiscal deficits, low public indebtedness, the large size of the Indonesian economy and its healthy medium-term GDP growth prospects.

Credit challenges include institutional weaknesses, reflected in Indonesia's scores on the World Bank's governance indicators.

In addition, the country's relatively shallow domestic capital market has led to a reliance on external funding, leaving financing conditions susceptible to international volatility.

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