Fitch rates Indonesia sukuk BBB

Fitch Ratings said it assigned Indonesia's U.S. dollar sovereign global certificates (sukuk) issued through Perusahaan Penerbit SBSN Indonesia III (PPSI-III) a BBB rating.

PPSI-III was set up solely for the purpose of selling the government's sharia-compliant securities in foreign currencies in the international markets. It is also the trustee.

“The certificates' rating is driven solely by Indonesia's BBB IDR. This reflects Fitch's view that a default of these senior unsecured obligations would reflect a default of Indonesia, in accordance with Fitch's rating definitions,” the agency said in a press release.

One of the tranches is a green sukuk. Its proceeds will be used to finance or refinance expenditures directly related to eligible green projects, as defined in the government's green sukuk framework.

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