US EditionTech-Led Selloff Drags Asian Stocks; Indonesia Tumbles on Moody's Outlook Cut
Moody's cited governance and policy unpredictability as causes for Indonesia’s negative outlook, with $860 million in foreign equity sales since last week, exchange data showed.
- On Feb 6, Moody's lowered the outlook for Indonesia's $1.4 trillion G20 economy to negative from stable, jolting markets and sparking a sell-off in local assets, Reuters reported.
- Moody's justification pointed to reduced predictability in policymaking and weakening governance, following MSCI's transparency warning and investor concerns over Prabowo's 8% growth push amid fiscal and central bank risks.
- Foreign investors accelerated selling, with the Jakarta Composite Index tumbling nearly 3%, and long-dated dollar bonds slipping between 0.3-0.5 cents, trading at five-month lows.
- Analysts warn of higher risk premiums across asset classes, while Indonesia’s financial regulator said fundamentals remain solid and Danantara Indonesia, sovereign wealth fund, and Chief Economic Minister Airlangga Hartarto sought to calm markets.
- With other agencies yet to review, analysts say other global ratings agencies have yet to release reviews this year, leaving onus on domestic policy response to prevent follow-up downgrades.
17 Articles
17 Articles
Indonesia's Economic Turmoil: Credit Rating Shake-Up Sparks Market Jitters | Science-Environment
Indonesia's Economic Turmoil: Credit Rating Shake-Up Sparks Market Jitters Moody's decision to downgrade Indonesia's credit rating outlook to negative has sparked apprehensions in financial markets. The rating agency, citing unpredictable policymaking, has drawn attention to the increasingly fragile economic landscape of Southeast Asia's largest economy.Despite reassurances from Indonesia's chief economic minister Airlangga Hartarto, who downpla…
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The New York LedgerMoody’s cuts outlook, affirms rating – DBS
The post Moody’s cuts outlook, affirms rating – DBS appeared on BitcoinEthereumNews.com. DBS Group Research report, authored by Radhika Rao, reports that Moody’s has changed Indonesia’s rating outlook to ‘negative’ from ‘stable’ while affirming the Baa2 rating. The agency cited concerns about reduced predictability in policymaking and increased spending without corresponding revenue generation. The report emphasizes the potential for a downgrade…
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