Outlook for RI bond stable: Moody's

JAKARTA: International ratings agency Moody's assigned on Thursday a B2 rating to the government's new sovereign bond, with a stable outlook.

Moody's praised improvements in the country's economy and external financial position in recent years as a strong signal on the part of the government toward reform programs, a statement said.

Despite this, challenges remained for the country if it wanted to generate higher investments and economic growth to resolve chronic unemployment problems, it added, while also warning about the risks of stalled progress in the reform program due to the election.

The government plans to issue sovereign bond worth at least US$400 million next month. The bonds, the first to be issued since the crisis, are expected to mature in 2014. -- JP