Goldman Sachs, UBS Cut Indonesian Stocks Rating on MSCI Warning

Wall Street banks are cutting their ratings on Indonesian stocks following a warning from MSCI Inc. over a potential downgrade to frontier status.

Goldman Sachs Group Inc. cut Indonesian equities to underweight, saying that MSCI’s concerns over investability could trigger more than $13 billion in outflows if the market was downgraded. Strategists at UBS AG lowered local shares to neutral.