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AKARTA: Rating agencies Fitch Ratings and Moody’s Investors Service have assigned ratings for Indonesia’s upcoming euro-denominated bonds, according to statements published on Tuesday.

Fitch said that it had assigned an expected rating of BBB-(EXP) for the debt papers that would be issued under the government’s global medium-term note program. The expected rating was in line with Indonesia’s long-term foreign-currency issuer default rating (IDR) of BBB- with a stable outlook, which was affirmed last month.

However, the rating will also be sensitive to any changes in the rupiah outlook. At present, the long-term local currency IDR is BBB- with a stable outlook as well, according to Fitch.

Meanwhile, Moody’s wrote in its statement that it had assigned provisional (P)Baa3 senior unsecured debt ratings to the euro-denominated bonds to be issued under the government’s (Baa3 stable) global MTN program.

It expects to remove the provisional status of the rating upon the closing of the proposed issuance and a review of the final terms.

According to Moody’s, the government bond rating balances its low debt levels, narrow fiscal deficits and healthy growth as compared to similarly rated emerging market peers against its weak revenue mobilization and reliance on external funding. — JP