Indonesia's rating is upgraded to investment grade

After 14 years, Indonesia has regained its investment status according to Fitch Ratings.

The agency said Thursday that Indonesia has maintained economic growth, low public debt and prudent policies. The country lost its investment grade status in December 1997 during the Asian financial crisis. Analysts have long predicted that Indonesia's rating would be upgraded to investment grade. This would lower borrowing costs and make the country more attractive to investors at a time when major economies are shaken by the crisis.
However, Fitch notes that the country also has weaknesses, such as corruption and poor infrastructure. The current government recognizes that infrastructure improvements are lagging behind economic growth.
On Friday, Indonesian President Susilo Bambang Yudhoyono promised to "continue reforms". Yudhoyono also said that "he agrees with the agency that the current political problems in Indonesia may disrupt the reform process"
Analysts expect other rating agencies-Moody's and Standard & Poor's-to follow suit.

According to the foreign press for ForTrader.ru