S&P rates Indonesia notes BB+

Standard & Poor’s said it assigned a BB+ long-term issue rating to the benchmark-sized euro-denominated senior notes that the Republic of Indonesia proposes to issue as part of its $30 billion global medium-term notes program.

The notes will constitute the direct, unconditional, unsubordinated and unsecured obligations of Indonesia, S&P said.

The ratings balance the country’s low per capita income and developing policy and institutional settings against the improved credibility of its monetary policy, buoyant economic growth and sound public finances, the agency said.

The positive outlook on the sovereign indicates the possibility that the agency could raise the ratings on Indonesia over the next 12 months if the government achieves its stated objective of improving the quality of expenditure, S&P said.

This would include allowing fuel-pump prices to adjust more freely and allocating its public investment budget efficiently, the agency said.

© 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.