Fitch Assigns BBB (EXP) Rating to Indonesia’s Proposed USD-denominated Sovereign Sukuk

Fitch Ratings (Fitch) has assigned an expected rating of BBB (EXP) to Indonesia’s proposed US dollar-denominated sovereign global Sukuk. This rating is in line with Indonesia’s Long-Term Foreign-Currency Issuer Default Rating (IDR) of BBB.

The Sukuk will be issued via Perusahaan Penerbit SBSN Indonesia III (PPSI-III), a legal entity set up in Indonesia for the purpose of issuing Shariah-compliant securities of the Government of Indonesia, in foreign currencies in international markets.

The expected rating is driven by the view that a default in these senior unsecured Sukuk will reflect a sovereign default by Indonesia. According to Fitch, PPSI-III’s ability to meet...