Indonesian rating 'still appropriate'

Indonesian rating 'still appropriate'

NEW YORK (Reuter): Indonesia's Baa3 long-term foreign currency debt rating remains appropriate despite the rupiah's decline and the Southeast Asian currency crisis sparked by devaluation of the Thai baht, a Moody's analyst told Reuters Financial Television.

"(Indonesia) does have a significantly lower rating than Thailand, so from that point of view, the rating can take a lot more noise than you generally would associate with a country rated in the A category," said Vincent Truglia, managing director and a senior analyst at Moody's Investors Service.

Asked whether Moody's would consider downgrading Indonesia, Truglia said the rating agency maintained a stable outlook on the country.

"From today's vantage point, there doesn't seem any downward pressure on the rating," Truglia said. "Something very dramatic would have to change and shift in the medium-term outlook."

Truglia said allowing the rupiah to float lower should help Indonesia compete with neighboring nations that have also devalued.

"If one or two move, it's probably pretty good if the others move along with them simply to maintain their overall competitiveness," he said.