Japan R&I cuts RI rating<\/p>\n
TOKYO (Dow Jones): Japan Rating and Investment Information
\nInc. (R&I) said Tuesday it has downgraded Indonesia's foreign
\ncurrency long-term debt rating to B-from B, while affirming the
\ncountry's foreign currency short-term rating at B.<\/p>\n
The Indonesian economy has gradually started on the road to
\nrecovery, as seen in signs of a recovery in consumption thanks to
\nthe stability of the rupiah market and falling inflation and
\nlower interest rates, R&I said.<\/p>\n
But the ratings agency cites problems such as the financial
\nsector's nonperforming loans and the problem of corporate debt.<\/p>\n
In the event that the turmoil over independence for East Timor
\nbecomes drawn out and political instability intensifies as the
\nNovember presidential election approaches, \"the economy could
\nonce more be forced into decline,\" R&I said.<\/p>\n
The World Bank, International Monetary Fund and foreign
\ngovernments have taken the claims of improper deals by Bank Bali,
\na major commercial bank, as a cue to suspend the supply of funds,
\n\"and this could also have an impact in areas such as foreign
\nexchange liquidity and fiscal management,\" R&I said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/japan-ri-cuts-ri-rating-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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