S&P Flags Risks to Indonesia Rating, Weeks After Moody’s Warning

S&P Global Ratings warned that rising fiscal pressures, particularly higher debt-servicing costs, are increasing downside risks for Indonesia’s sovereign credit profile and could lead to negative rating action.

Interest payments “very likely” exceeded the key threshold of 15% of government revenue last year, Rain Yin, a sovereign analyst at S&P Global Ratings, said in an online webinar about the Asia Pacific region on Thursday. If they stay above the threshold on a sustained basis, that could prompt a more negative view on the rating, she said.