December 21, 2017 / 8:06 AM / 6 months ago

ASIA CREDIT CLOSE: Indo bonds firmer in muted Asian credit markets

SINGAPORE, Dec 21 (IFR) - Indonesian sovereign and corporate bonds were firm in subdued Asian secondary markets after Fitch upgraded its rating for the country to BBB, with a stable outlook, from BBB-.

Fitch cited the country’s growing foreign reserves, as well as the government’s disciplined monetary policy and prudent measures to rein in corporate external debt for the upgrade.

The markets cheered the news with the recent 2028 bonds from the sovereign tightening around 2bp today to 109bp/107bp over US Treasuries.

The sovereign’s 4.35% 2048s were quoted at 144bp/143bp, having rallied strongly from the reoffer of 163.3bp.

Corporate bonds from Indonesian names also gained with Indika’s 6.875% 2022s rallying to 105.00 from yesterday’s 104.5. The sovereign’s CDS pulled in 2.5bp to 86bp/88bp on the good news.

Asian credit spreads were firmer with the iTraxx Asia ex-Japan investment-grade index in about 1.5bp to 68bp/69bp.

Reporting by Kit Yin Boey; Editing by Dharsan Singh

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