JAKARTA. Rating agency Moody's has given a warning about Indonesian corporate debt, which relies heavily on foreign sources, while choosing not to downgrade the sovereign rating of the country. Moody's kept the sovereign rating at Baa3 with a stable outlook as government and corporate debts were at 26,8% and 23,7% of gross domestic product ( GDP ), respectively. The level of government debt is moderate, as the average debt of other countries with the same rating is around 42%. "However, almost half of the debt is denominated in foreign currencies, and overseas investors hold more than 38 percent of local government bonds," managing director Atsi Seth said in Jakarta on Wednesday.
Moody's warns of corporate foreign debt
JAKARTA. Rating agency Moody's has given a warning about Indonesian corporate debt, which relies heavily on foreign sources, while choosing not to downgrade the sovereign rating of the country. Moody's kept the sovereign rating at Baa3 with a stable outlook as government and corporate debts were at 26,8% and 23,7% of gross domestic product ( GDP ), respectively. The level of government debt is moderate, as the average debt of other countries with the same rating is around 42%. "However, almost half of the debt is denominated in foreign currencies, and overseas investors hold more than 38 percent of local government bonds," managing director Atsi Seth said in Jakarta on Wednesday.