Fitch assigns B+ to RI global bond

Fitch assigns B+ to RI global bond

JAKARTA: Fitch Ratings, a global rating agency, said on Wednesday
it expects to assign a long-term foreign currency rating of B+ to
the country's forthcoming dollar-dominated sovereign bonds, which
will mature in 2014.

The rating, with the outlook being stable, was underpinned by
prudent fiscal policy, macroeconomic stability and sustained
improvements in the country's solvency and liquidity in recent
years, the agency said in a statement.

"Indonesia's economy has displayed remarkable resilience in
the face of a host of shocks since the Bali bombing in 2002,
turning in growth of 4.1 percent in 2002, the highest since
2000," the statement said.

The government plans to issue sovereign bonds in March, valued
at a minimum of US$400 million, as part of its efforts to obtain
fresh funds to be used to help finance the 2004 state budget
deficit.

The upcoming issue should mark the first global bond issue
since the crisis, having issued $400 million-worth of Yankee
bonds in 1996. -- JP