Moody's May Upgrade Indonesia, Vietnam Debt Ratings By Wes Goodman and Denise Kee July 13 (Bloomberg) -- Indonesia and Vietnam are among the Asian countries that may get better debt ratings from Moody's Investors Service, analysts Steven Hess and Thomas Byrne said. Indonesia's government is handling the nation's finances well and has brought political stability to the country, Hess said. Vietnam may also earn a higher debt rating as stronger economic growth attracts investment, Byrne said in a seminar the company held for reporters in Singapore. ``The Indonesia government is doing a pretty good job,'' said Hess. ``We've seen a period of relative political stability'' under President Susilo Bambang Yudhoyono. Indonesia's debt is less than 50 percent of gross domestic product, dropping from about 100 percent during the Asian financial crisis a decade ago, Hess said. ``There is gradual improvement in Indonesia's credit fundamentals,'' he said. `We're fairly confident that government debt ratios are going to improve further.'' In Vietnam, improving relations with the U.S. bodes well for Vietnam's exports, Byrne said. ``Growth is so rapid in Vietnam,'' Byrne said. ``Foreign direct investment is coming in very strongly.'' One drawback is that inflation is ``a little bit on the high side,'' Byrne said. Thai Politics In Thailand, there have been political problems following September's military coup, Byrne said. ``For Thailand's credit rating to go up, we have to see some resolution of all this political uncertainty,'' he said. Better ratings may encourage more global funds to invest in Asia. Overseas investment in emerging markets will reach $469 billion this year, according to the Institute of International Finance in Washington. Moody's raised Indonesia's debt rating outlook to ``positive'' from ``stable'' in February and affirmed its long- term foreign currency debt rating of B1, the fourth-highest non- investment grade, the same levels as Pakistan, the Philippines and Turkmenistan. Fitch rates Indonesia's debt at BB-, the third highest non- investment grade, while Standard & Poor's ranks Indonesia's dollar-denominated debt at BB- with a stable outlook. In March, Moody's raised the outlook on Vietnam's Ba3 foreign-currency debt-rating to positive from stable. It rates Vietnamese debt two levels below investment grade. Southeast Asia's third-most populous nation's Ministry of Planning and Investment expects foreign investment commitments this year to rise by at least 18 percent to $12 billion. To contact the reporter on this story: Denise Kee in Singapore at [EMAIL PROTECTED] Wes Goodman in Singapore at [EMAIL PROTECTED] .
--------------------------------- Expecting? Get great news right away with email Auto-Check. Try the Yahoo! Mail Beta.
