Moody's Assigns Negative Outlook, Danantara CEO: Our Roadshow Was Positive
Chief Executive Officer of BPI Danantara, Rosan Roeslani, has responded to the Baa2 rating with a negative outlook assigned by ratings agency Moody’s. Rosan explained that the negative outlook is part of the assessment of Indonesia’s sovereign rating, not a specific reflection of Danantara’s fundamental condition. “It’s a sovereign rating. It’s a sovereign rating, right,” Rosan said at the Presidential Palace Complex on Thursday.
When asked whether the negative outlook could potentially disrupt investor interest in Danantara’s bonds, Rosan dismissed the notion. He stated that the global bond issuance actually received a very positive response from international investors. “On the contrary, as I have said, we recently issued 5-year and 10-year bonds, and the response was very, very positive,” Rosan said.
He revealed that the positive investor enthusiasm was evident during roadshows conducted in several global financial centres, including Singapore, Hong Kong, Japan, Boston, New York, and London. The events were attended by more than 120 companies. “More than 120 companies participated because we conducted roadshows in Singapore, Hong Kong, then Japan, Boston, New York, and London, and the response was very positive. That is why our yield at that time was 5.35%. So the response was very positive, and we are also reviewing the possibility of issuing longer-term bonds of over 10 years,” he said.
In its report, Moody’s noted that the bond rating for Danantara is aligned with the government’s credit assessment. This reflects the credit linkage between Danantara Investment Management (DIM) and the government, given that the company is a state-managed entity of BPI Danantara. Moody’s assigned a Baa2 rating to the senior unsecured US dollar bonds to be issued by DIM under its US$5 billion global medium-term note programme, with a negative outlook. Moody’s has not provided a baseline credit assessment for DIM because the company is newly operational, lacks a significant track record, and is not yet operating as a standalone entity. The rating is therefore primarily driven by its linkage to the government rather than its independent credit strength. Despite this, Moody’s assessed that DIM has a good level of liquidity, supported by capital injections from BPI Danantara as it builds external funding, including its recent inaugural bond issuance.