S&P ups BNI, Indonesia Eximbank

S&P said it raised PT Bank Negara Indonesia (Persero) Tbk.’s (BNI) issuer credit rating to BB+/stable/B from BB/positive/B and Lembaga Pembiayaan Ekspor Indonesia;s (Indonesia Eximbank) issuer credit rating to BBB-/stable/A-3 from BB+/positive/B following a similar action on the sovereign credit rating on Indonesia.

The agency also upgraded the Asean regional scale ratings on both the financial institutions and the senior unsecured debt ratings on Indonesia Eximbank.

S&P said the sovereign ratings upgrade was driven by its assessment of reduced risks to Indonesia's fiscal metrics. The agency believes the government's increased focus on realistic budgeting has reduced the likelihood that a shortfall in future revenue would widen the general government deficit significantly beyond what is expected now. This also reduces the risk of a rising net general government debt ratio and debt servicing burden.

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