Jakarta (ANTARA News) - International rating agency Standard and Poor`s (S&P) has raised Indonesia`s long-term foreign currency rating to BB from BB- and affirmed its long-term local currency rating at BB+.
In a press statement issued on Friday, S&P analyst for Indonesia Agost Benard said among the key factors pushing up the rating were improving government debt ratio and growing foreign currency reserves which reduce Indonesia`s vulnerability to shocks, coupled with cautious fiscal management policies.
"The rating upgrade reflects steadily improving debt metrics and growing foreign currency reserves with continued cautious fiscal management," Agost Benard said.
The two ratings` outlook is positive. Given the upgraded rating Indonesia is only two notches away from an investment grade and the positive outlook suggests that Indonesia is most likely to see another rating upgrade in the next one year.(*)