Credit rating agency S&P finally lifted Indonesia’s sovereign debt rating to Investment Grade. While Fitch and Moodys’ lifted country’s rating to investment grade already years ago, S&P had not until today given upgrade to Indonesia. This is a very positive development for Indonesia as now many conservative investment managers can start to allocate investments to Indonesian securities.
Upgrade will have wide ranging implications as it will reduce interest costs of sovereign and corporate bonds, increase IDRs value and decrease country’s risk premium. Naturally, the upgrade will also have positive effects on corporate sector confidence levels, while stock market will also benefit from this.
More information can be found here: S&P Upgrades Indonesia to Investment Grade Amid Stronger Growth