S&P hints at possible ratings upgrade for Indonesia

SINGAPORE – Ratings agency Standard and Poor’s has hinted at a potential upgrade for Indonesia, saying that, in its view, Indonesia's fiscal framework has improved, and that this should improve the quality of public expenditure and lead to more predictable fiscal outcomes.

“However, fiscal performance has not improved in tandem for cyclical and structural reasons,” S&P says.

“We are therefore affirming our 'BB+' long-term and 'B' short-term sovereign credit ratings on Indonesia. We are also affirming our
'axBBB+/axA-2' ASEAN regional scale ratings.

“The positive outlook reflects the possibility that we may raise the ratings if the improved fiscal framework indeed delivers better fiscal
performance, such that deficits decline and borrowings remain low.”  www.standardandpoors.com  (ATI).