Moody's upgrades Indonesia's sovereign ratings

Moody's Investors Service said Monday it upgraded Indonesian government's foreign- and local-currency bond ratings to Ba1, from Ba2, with stable outlook. 

Moody's said in a statement that its main reasons for the move were the country's economic resilience, accompanied by sustained macroeconomic balance; improvement in the government's debt position and the central bank's foreign-currency reserve adequacy; and improving prospects for foreign direct investment inflows.

"We have upgraded the sovereign credit ratings, as the momentum in the economy is expected to be sustained by steady domestic demand, a reasonable pace and sequencing of policy and structural reforms, and rising foreign direct investment," Aninda Mitra, Moody's lead sovereign analyst for Indonesia, said in a statement. 

The upgrade affects the country's ceiling for foreign-currency bonds, which was raised by a notch to Baa3, and the foreign-currency bank-deposit ceiling, which was raised to Ba2. Source: Market Watch