TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

Fitch rates Indonesia's proposed PPSI-III Sukuk 'BBB-(EXP)'

Fitch Ratings has assigned Indonesia's proposed Perusahaan Penerbit SBSN Indonesia III (PPSI-III) global certificates (sukuk) a “BBB-(EXP)” rating

The Jakarta Post
Jakarta
Wed, August 21, 2013

Share This Article

Change Size

Fitch rates Indonesia's proposed PPSI-III Sukuk 'BBB-(EXP)'

F

itch Ratings has assigned Indonesia'sproposed Perusahaan Penerbit SBSN Indonesia III (PPSI-III) global certificates(sukuk) a '€œBBB-(EXP)'€ rating.

'€œThe expected rating is in line with the Republic of Indonesia's Long-Term Foreign Currency Issuer Default Rating (LT FCIDR) of 'BBB-', which has a stable outlook. The final rating is conditional on receipt of information conforming to materials already received,'€ Fitch said in an official release.

The rating reflects Fitch's view that cash flow supporting payment on the proposed sukuk will constitute direct, unconditional, unsecured and general obligations of Indonesia, ranking equally with the country'€™s unsecured and unsubordinated marketable external debt.

'€œIndonesia's ratings are underpinned by its strong economic growth, supported by high investment and savings rates, and low and declining public debt ratios,'€ Fitch said.

'€œPressures on the external finances, a credit weakness, have resulted in some strain on the credit profile, but these are not yet seen as inconsistent with a 'BBB-' rating. The ratings incorporate Fitch's expectation that policy will be managed in such a way as to prevent economic overheating,'€

Progress in tackling structural weaknesses, including low average incomes and deficiencies in infrastructure, combined with sustained economic growth, without a build-up of external imbalances or a severe inflation shock, would be positive for the ratings over the medium-term, according to Fitch.

'€œFurther reform of public finances, leading to enhanced budgetary flexibility, would also be positive for the ratings,'€ Fitch said.

 

{

Your Opinion Counts

Your thoughts matter - share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.

Enter at least 30 characters
0 / 30

Thank You

Thank you for sharing your thoughts. We appreciate your feedback.