Jakarta. Moody's Ratings has assigned a Baa2 rating with a negative outlook to the proposed US dollar-denominated senior unsecured notes to be issued by Danantara Investment Management (DIM), a subsidiary of Indonesia's sovereign wealth fund, Danantara Indonesia.

The notes will be issued under DIM's $5 billion global medium-term note (MTN) program, which Moody's has also rated Baa2, the agency said on Tuesday.

Moody's said DIM's issuer rating is aligned with Indonesia's Baa2 sovereign rating, reflecting what it described as strong credit linkages between the company and the government.

The agency classified DIM as a Government-Related Issuer (GRI) and applied a top-down rating approach, meaning the company's credit profile is primarily driven by expected government support rather than its own standalone financial strength.

"No Baseline Credit Assessment (BCA) is assigned, reflecting DIM's nascent stage of development, limited track record, and absence of meaningful standalone operations," Moody's said.

According to the agency, the rating is supported by DIM's ownership structure, its strategic role within the Danantara group, and the expectation of timely extraordinary government support if needed.

Moody's also highlighted the company's statutory foundation. DIM was established under Law No. 16 of 2025 as part of the Danantara institutional framework, which created BPI Danantara as the overarching entity responsible for managing and optimizing Indonesia's state-owned enterprise assets and investments.

DIM is wholly owned by Danantara, and any divestment would require an amendment to the law, reinforcing the durability of the ownership relationship, Moody's said.

The agency added that close government oversight and governance integration further strengthen the expectation of state support. Senior management and board members overlap between BPI Danantara and DIM, helping align strategy and investment execution.

The negative outlook mirrors that of Indonesia's sovereign rating. Moody's said "an upgrade of DIM's rating is unlikely" unless Indonesia's sovereign rating is upgraded while the company's ties to the government remain intact.

Conversely, the rating could come under pressure if DIM's relationship with the government weakens through changes to its mandate, ownership structure, or role within Danantara that reduce expectations of extraordinary government support.

Despite the negative outlook, Moody's said DIM maintains excellent liquidity. The company has received equity injections from Danantara Indonesia and has diversified its funding sources through a $1.5 billion inaugural bond issuance, Rp 68.4 trillion (about $3.8 billion) raised through Patriot Bonds, and $10 billion in revolving credit facilities, including $1 billion in committed funding.

Moody's added that DIM has no dividend payment obligations and faces no debt maturities over the next two to three years, supporting its near-term financial flexibility.