Fitch lifts Indonesia view to positive

Fitch Ratings said it revised the outlook on Indonesia's long-term foreign- and local-currency issuer default ratings to positive and affirmed the ratings at BBB-.

The ratings on Indonesia's senior unsecured foreign- and local-currency bonds and foreign-currency sukuks issued by Perusahaan Penerbit SBSN Indonesia II and III also were affirmed at BBB-.

The country ceiling also was affirmed at BBB with a short-term foreign- and local-currency issuer default ratings at F3.

The senior unsecured short-term issues also were affirmed at F3.

Indonesia's ratings balance a low government debt burden, favorable growth outlook and limited sovereign exposure to banking-sector risks with a weak external position compared with peers, Fitch said.

This makes the country relatively vulnerable to shifts in market sentiment and a weak, but improving, business environment, the agency said.

The outlook revision also considers the country’s track record of macroeconomic stability by the authorities in the past few years despite the challenging external environment, Fitch said.

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