|
Global rating agency Moody's Investors Service is to expand
its services in Indonesia to meet increasing rating needs resulting
from the country's growing capital markets.
It is currently in the process of rating seven more Indonesian
companies -- mostly operating in the financial sector -- through its
local unit, PT Moody's Indonesia, which it established after recently
acquiring Kasnic Credit Rating Indonesia.
"There will be a lot of demand for loans in the real sector, many of
which will be financed through bond issues, as well as bank loans,"
Moody's Indonesia president Minon Almasyhur said in a media briefing
Wednesday. "We see this as an opportunity to further expand our rating
services."
Moody's also sees recent efforts to develop the local bond market --
such as plans to issue more varieties of debt instruments, including
sukuk (sharia bonds) and local government bonds -- as providing a
further potential boost for the rating business.
Minon said that Moody's planned to rate the overall performance of
companies themselves in terms of finances and business prospects, as
well as their debt issues.
"One time that company ratings are needed is during acquisitions so
that an investor can acquire an objective view of the company," she
said.
"There is also a need for the rating of insurance companies so that
policy holders can be assured of their insurance cover."
Minon also referred to plans to require consumer finance companies to
be rated before taking out loans from non-bank financial institutions
as giving rise to further opportunities for Moody's.
Moody's most recently rated the locally based Bank Victoria, giving the
lender's senior bonds and subordinate bonds an A3.id and Baa2.id,
respectively, both on a stable outlook. Moody's in Indonesia uses a
national rating scale that combines its global rating methods with
local considerations, such as forex rates, and the political and
macroeconomic situations.
Meanwhile, Indonesia's sovereign rating outlook was recently upgraded
to positive from stable, with the country's long-term foreign currency
bonds rated Ba3 and long-term issuer B1.
Moody's competitors include other global rating agencies such as
Standard and Poor's and Fitch.
|
