JAKARTA, Indonesia (AP) — Standard & Poor’s has raised Indonesia’s sovereign credit rating to investment grade in recognition of a stable governing coalition and improved control over government finances.
The ratings agency said Friday that the long-term rating was raised to “BBB minus,” which signifies adequate ability to repay national debts, from “BB plus,” which indicates a country is vulnerable to default.
Until now, S&P was the only major credit rating agency to not assign Indonesia an investment grade rating.
The ratings can influence a country’s ability to attract foreign investment and upgrades can lower the cost of borrowing in foreign currencies.
S&P says corruption remains a problem in Indonesia and has stunted investment.