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Back S & P raised its Indonesian sovereign credit rating to investment grade

(Takungpao) - Standard & Poor's announced on Friday that it upgraded Indonesia's sovereign debt to its investment level, saying it would reflect a lower risk of its assessment of Indonesia's fiscal position. Fund managers said Standard & Poor's on the Indonesian rating and the other two rating companies Fitch and Moody's, meaning that Indonesia can lower the cost of issuing bonds.
Standard & Poor's announced that the Indonesian sovereign debt rating from BB +, raised to BBB-. Standard & Poor's BB + is a waste level, while BBB - is an investment grade. Aberdeen asset management investment manager said that in the macro position, the S & P raised Indonesia rating is positive, which will further reduce the cost of financing in Indonesia, because Indonesia's borrowing costs relative to the region is more expensive.
Based on some worries, S & P has not previously followed other large rating agencies to raise Indonesia's rating. Indonesian President Victoria to cancel petrol subsidies, S & P in May 2015 to give a positive outlook for Indonesia rating. Last year in June S & P again decided not to give Indonesia investment rating on the grounds that the government tax weakness and deterioration of corporate credit quality. Since then, Victoria has reorganized its cabinet, appointed by reformers, former chief executive of the World Bank Sri Mulyani (Sri Mulyani Indrawati) for the finance minister.
The Indonesian rupiah reversed the decline
Most of the emerging Asian currencies on Friday narrow range, the Indonesian rupiah has fallen 0.5%, and hit the January 4 low. However, after the rating agency Standard & Poor's announced the Indonesian credit rating, the Indonesian rupiah reversed the decline, rising from the Indonesian rupiah to the dollar rose 0.3 percent to 13337, an increase of about 1 percent this year. The Jakarta Composite Index rose 32% to 5825.2 on Friday, up nearly 10% this year. Natixis emerging Asian economists said that Indonesia's economic growth last year, 5.02%, after raising the rating to attract foreign investors.
The Indonesian central bank kept interest rates unchanged on Thursday and raised the risks it faces, including the possibility that the US could raise interest rates in June. Economists say the overall worries about emerging Asian currencies are political turmoil from the United States, fearing that US President Trump has postponed its stimulus plan, and that Brazil's political crisis has also affected local financial markets to bring risks to emerging markets Emotions, drag its currency.

Source: http://www.takungpao.com.hk/culture/text/2017/0520/83012.html
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