RI ratings as economy strengthens

Fitch Ratings on Monday upgraded Indonesia’s long-term foreign and local currency ratings to BB+ from BB, one level below investment grade, citing the country’s resilience to the global financial crisis.

S&P’s rating is three levels below investment grade, while Moody’s is two levels below investment grade.

The ratings’ outlook is stable.

Moody’s Investors Service on Jan. 21 maintained its Ba2 rating for Indonesia, while Standard & Poor’s raised the outlook on its BB- rating for the country to BB+ on Oct. 23, Bloomberg reported.

“The rating action reflects Indonesia’s relative resilience to the severe global financial stress test of 2008 and 2009, which has been underpinned by continued improvements in the country’s public finances, a fundamental sovereign rating strength and a material easing of external financing constraints,” Ai Ling Ngiam, Fitch’s director of Asian sovereign ratings, said in a statement.

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