Indonesia makes high grade as Fitch upgrades EM sovereigns

Fitch yesterday upgraded the issuer default rate of Indonesia to BBB- from BB+, giving it investment grade status. At the same time Georgia was upgraded to BB- from B+.

Both countries are reducing government debt and are expected to see more than 5% growth in 2012.  

Georgia has reined in its government deficit from 6.6% of GDP to 3.7% while inflation has fallen, foreign exchange reserves have increased and real GDP is projected to grow by 5.5% in 2012.

Indonesia also has low public debt, has accumulated significant foreign currency reserves and is forecast to see GDP grow over 6% in 2012.