World Economy

Moody’s Raises Indonesia Outlook

Moody’s Raises Indonesia OutlookMoody’s Raises Indonesia Outlook

Indonesian authorities welcomed a credit outlook upgrade by Moody’s as a sign investors are increasingly comfortable with the country, while Finance Minister Mulyani Indrawati chastised Standard & Poor’s for holding back an investment-grade rating, Reuters reported. Moody’s Investors Service upgraded its credit outlook on Indonesia sovereign debt to “positive” from “stable” late on Wednesday and reaffirmed its Baa3 ratings, the lowest notch for investment grade debt. The agency noted that Southeast Asia’s largest economy is now less vulnerable to external shocks and has a lengthening track record of economic stability and fiscal discipline. This followed a similar December move by Fitch, which has an equivalent BBB- rating, and comes as Indonesia’s policymakers seek to attract more foreign investment when emerging market assets globally are under stress. Officials have long been hoping for a ratings upgrade from Standard & Poor’s, which has kept Indonesian debts at junk status. Fitch Ratings gave Indonesia an investment grade ratings in 2011 and Moody’s in 2012.


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