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Indonesia’s Debt Rating Raised to Investment Level by Moody’s
Dominic Diongson | January 18, 2012

A worker measures the elevation of rods at a construction site in Jakarta. Indonesia had its sovereign debt rating raised by Moody’s Investors Service to investment level for the first time in 14 years on Wednesday. (Reuters Photo) A worker measures the elevation of rods at a construction site in Jakarta. Indonesia had its sovereign debt rating raised by Moody’s Investors Service to investment level for the first time in 14 years on Wednesday. (Reuters Photo)
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Indonesia had its sovereign debt rating raised by Moody’s Investors Service to investment level for the first time in 14 years, citing the country’s resilience to large external shock.

Moody’s upgraded the government’s foreign and local currency bond ratings to Baa3 from Ba1. Indonesia had lost its investment level rating in 1997, when the financial crisis pushed the country to devalue the rupiah.

Moody’s also cited the presence of policy buffers and tools that address financial vulnerabilities and a healthier banking system capable of withstanding stress.

The higher rating follows Fitch Ratings’ upgrade last month on Indonesia’s debt to its lowest investment level by one notch from junk.




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