RI rating may be upgraded

RI rating may be upgraded

HONG KONG (Dow Jones): The sovereign ratings of Malaysia, South Korea and Indonesia will likely be upgraded this year while the Philippines could be downgraded, according to John Woods, HSBC's head of Asia fixed income research.

Considering the speed of reforms in South Korea, the country could be the first sovereign issuer to be upgraded from its current triple-B credit rating level, Woods said Thursday at a seminar on HSBC's Asian outlook.

Malaysia's efforts could also be rewarded this year as the country will likely be upgraded from its current triple-B level.

In the case of Indonesia, Woods noted that the potential upgrade would be technical. The country is currently rated 'CCC+' by Standard & Poor's and 'B3' by Moody's Investors Service.

On the other hand, the Philippines will likely be downgraded to the 'BB' level from 'BB+' because of the country's limited freedom in its monetary policy, Woods said.