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Fitch affirms Indonesia's BBB- rating with stable outlook

Staff writer |
Fitch Ratings affirmed Indonesia's credit rating at BBB- and the rating outlook at stable.

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Indonesia's ratings balance a low government debt burden, favorable growth outlook and limited sovereign exposure to banking-sector risks with a weak external position that makes the country relatively vulnerable to shifts in market sentiment and an improving, albeit weak, business environment, the agency said in a statement.

A strengthening of external balances and evidence of higher sustainable GDP growth in the longer run could trigger positive rating action, Fitch said.

Meanwhile, a sharp and sustained external shock to foreign and/or domestic investors' confidence and a rise in the public debt burden could lead to negative rating action, the agency added.

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