Moody's may upgrade RI rating<\/p>\n
The government welcomed S&P's credit rating outlook upgrade and is looking forward to similar decisions by other rating agencies, which would further boost the rupiah and support a US$1 billion global bond offering sometime next month.<\/p>\n
Coordinating Minister for the Economy Boediono said that besides S&P, representatives from Moody's Investment Service had met with him to discuss their latest review on Indonesia's economy, signaling a possible rating upgrade.<\/p>\n
\"We expect Moody's to also revise its rating in a positive direction, hopefully before our global bond offering, as this would be reduce our borrowing costs,\" he said.<\/p>\n
S&P currently rates Indonesia's foreign currency debt at \"B+\", which is two levels below investment grade.<\/p>\n
Moody's rating, meanwhile, is one notch lower at B2 with a positive outlook, while Fitch Ratings is one notch higher than S&P at \"BB-\", also with a positive outlook.<\/p>\n
Higher credit ratings and outlooks mean lower risk premiums on an issuer's debts, thus helping to lower borrowing costs.<\/p>\n
Meanwhile, the Finance Ministry's director general of the treasury, Mulia P. Nasution, said that the planned global bond offering would be held in March.<\/p>\n
\"We will proceed with the global bond issue as scheduled,\" he said.<\/p>\n
The government hopes to raise Rp 24.9 trillion in net proceeds this year from local rupiah-denominated bonds, overseas dollar-denominated bonds, and sharia-based sukuk bonds. Indonesia managed to raise a combined total of $2.5 billion from global bond issues in March and October last year. -- JP<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/moodys-may-upgrade-ri-rating-1139709600", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }