Moody’s: Indonesia bond Baa3

Moody’s Investors Service said it assigned a provisional rating of Baa3 to the proposed dollar-denominated trust certificates to be issued by the government of Indonesia through Perusahaan Penerbit SBSN Indonesia III (PPSI III) under its existing trust certificate issuance program.

The payment obligations associated with these certificates are direct obligations of Indonesia, Moody’s said.

The payment obligations represented by the securities to be issued by PPSI III are ranked pari passu with other senior, unsecured debt issuances of the government, the agency said.

As such, the rating on the proposed sukuk is in line with Indonesia’s Baa3 issuer rating, given that any direct government obligation whose repayment is handled by the government receives a rating equivalent to that of the government, Moody’s said.

Indonesia’s Baa3 government bond rating balances the country’s low debt, narrow fiscal deficits and healthy growth as compared to peers against weak revenue mobilization and a reliance on external funding, 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.