Fitch says Indonesia rating could be upgraded

JAKARTA: PT Fitch Ratings Indonesia sees there is a possibility of Indonesias credit and bond rating upgrade to the investment grade by any rating agencies, without prior upgrade in rating prospect.President Director Fitch Baraditta Katoppo said that it is possible to make a rating upgrade since the parent of the rating agency, Fitch Rating, has once upgraded Indonesias rating without upgrading the prospect.Fitch global had upgraded Indonesias rating twice without prospect upgrade, he said at the seminar What happens with JCI? last night.He said that an upgraded rating makes global investor attracted to Indonesian capital market and boosts more incoming cash from foreign investors in the market.He added that rating upgrade is triggered by three economic conditions, i.e. higher ratio of received tax to GDP, increasing income per capita, and more foreign investors.However, the rating must be sustained, or keep increasing. It should not slide after touching higher level, he said.Baradita believed that the rating upgrade by any rating agency, adding to reaching the investment grade, could boost the investment climate in Indonesian market.According to Fitch, Indoensias rating at the moment was set one level below the investment grade at BB+. Moody's Investor Services put Indonesia in Ba2 level while Standard&Poor's set the rating in BB. All of the ratings stay in positive prospect. (t04/wiw)

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