Moody's rates Indonesia notes Baa2

Moody's Investors Service said it assigned Baa2 ratings to the proposed senior unsecured yen-denominated notes to be issued by the government of Indonesia.

The six planned drawdowns have maturities ranging from three- to 20-years, Moody's said.

The notes to be issued under the government's samurai shelf program will constitute direct, unconditional and unsecured obligations of Indonesia, the agency said, and will rank pari passu among themselves and at least pari passu in right of payment with all other present and future unsecured obligations of the government.

The proceeds are intended to finance the budget deficit or for general financing purposes, Moody's said.

The ratings mirror Indonesia's long-term issuer rating of Baa2 with a stable outlook, the agency said.

The ratings are underpinned by policy emphasis on macroeconomic stability that increases its resilience to shocks, Moody's said.

The sovereign's credit profile is supported by narrow fiscal deficits and low government debt ratios, the agency added.

The large size of its economy and healthy and stable growth prospects act as credit supports, Moody's said.

Credit challenges include low revenue mobilization, the agency said, and a reliance on external funding.

© 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.