Japan rating agency ups Indonesia to investment grade

15-Jul-2010 Intellasia | Reuters | 7:01 AM Print This Post

Japan Credit Rating Agency raised Indonesia’s sovereign debt rating to investment grade in a move that could be followed by major rating agencies, reflecting growing confidence in the management of Southeast Asia’s largest economy.

The agency raised Indonesia’s foreign currency rating by a notch to BBB-minus and said the country could “sustain modest economic growth while maintaining macroeconomic stability and fiscal soundness in the years to come.”

The move could be a boost to Indonesia’s plan to issue samurai bonds to Japan’s debt investors who, although yield-hungry, are cautious of junk-rated issuers.

In February, Philippines issued samurai bonds, or yen bonds issued in Japan by non-Japanese entities, to raise 100 billion yen, much below the initial target of $1 billion. Philippines is rated BBB-minus by JCR.

http://ph.news.yahoo.com/rtrs/20100713/tbs-indonesia-rating-jcr-b246348.html

 


Category: Indonesia

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