Moody's rates Indonesia bonds Baa3

Moody's Investors Service said it assigned provisional Baa3 senior unsecured debt ratings to the U.S. dollar-denominated bonds to be issued by the government of Indonesia.

The senior unsecured bond will rank pari passu with all of the government of Indonesia's current and future senior unsecured debt, the agency noted.

The proceeds are intended for the republic's financing requirements, Moody's said.

Indonesia's Baa3 issuer rating incorporates the country's relatively low government debt levels, narrow fiscal deficits and healthy growth as compared to similarly rated emerging market peers, the agency said.

Indonesia also benefits from the large scale of the economy and a stable banking system that poses limited contingent risks to the sovereign, Moody's said.

The narrow revenue base is a key credit constraint that hampers the government's ability to support economic growth, Moody's added.

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