KONTAN.CO.ID. Moody's said on Thursday it had cut Indonesia's credit rating outlook to negative, citing reduced predictability in policymaking days after MSCI flagged transparency issues that triggered a market rout of more than $80 billion.

Moody's said the shift to a negative outlook from stable reflected risks to policy effectiveness and signs of weakening governance.

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"If sustained, the trend could erode Indonesia's long-established policy credibility, which has supported solid economic growth and macroeconomic, fiscal and financial stability," the ratings agency said.

Indonesia's central bank, the finance ministry and the president's office did not immediately respond to requests for comment.

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A slew of Indonesian officials resigned on Friday after MSCI warned two days earlier that concerns over ownership and trading transparency in Indonesian stocks could prompt a downgrade to "frontier" status if the issues were not resolved by May.

Indonesia has since promised capital market governance reforms and several measures to address MSCI's concerns.

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