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.