🚨 Newsflash: Moody’s Cuts Indonesia Rating Outlook to Negative
The rating agency cited concerns over policy stability under President Prabowo Subianto.
Moody’s Ratings has cut its outlook for Indonesia to negative from stable, citing concerns over policy stability under President Prabowo Subianto, Bloomberg reported.
The outlook change, while affirming a Baa2 rating, comes after a massive selloff in the country’s stock index last week over investibility concerns, and broader sweep of reforms under Prabowo that have raised concerns over the fiscal and monetary path of the country.
“The outlook change is driven by reduced predictability in policymaking, which risks undermining policy effectiveness and points to weakening governance,” Moody’s said in a statement.
“If sustained, the trend could erode Indonesia’s long established policy credibility, which has supported solid economic growth and macroeconomic, fiscal and financial stability.”